Ted Sarandos, Greg Peters Fight to Lock in Netflix’s Warner Bros. Discovery Deal

Netflix co-CEOs Ted Sarandos and Greg Peters are mounting a two-front campaign to salvage their $83 billion deal for Warner Bros. Discovery after WBD reopened the door to a rival bid from David Ellison’s Paramount Skydance, escalating what could become the largest media merger of the modern era. Paramount has until Feb. 23 to submit a final offer, while WBD shareholders are scheduled to vote March 20 on whether to approve Netflix’s acquisition.

The competing bids present different futures for WBD and media consumers. Under Netflix’s agreement, WBD would spin off its cable networks, including CNN, TNT, HGTV and Food Network, into a separate public company called Discovery Global, with existing shareholders retaining ownership of that entity. Netflix would then acquire WBD’s studios, streaming platforms and core entertainment assets, including Warner Bros. Pictures, HBO Max and DC. Paramount Skydance, by contrast, has offered $30 per share in cash to acquire the entire company, valuing WBD at $108.4 billion and positioning its proposal as both higher priced and structurally simpler.

With the deadline approaching, Sarandos and Peters are making their case in Washington and directly to shareholders.

Sarandos makes the case before lawmakers

Sarandos, Netflix’s longtime content chief before becoming co-CEO in 2020, has taken the public-facing role in Washington. On Feb. 3, he testified before the Senate Judiciary Committee’s antitrust subcommittee, arguing that Netflix should not be evaluated narrowly as a streaming service competing only with rivals like Disney+ or HBO Max, but as part of a broader television ecosystem increasingly dominated by YouTube.

“There is no credible market definition that excludes YouTube,” Sarandos told lawmakers. He cited Nielsen data showing Netflix accounts for about 19 percent of U.S. streaming TV viewing, adding that its share would increase by only about 1 percentage if HBO Max were folded into the company. 

That distinction is central to Netflix’s regulatory strategy. A narrow definition of the streaming market could frame the acquisition as consolidation among dominant players, raising antitrust concerns. A broader definition—one that includes YouTube and other digital platforms—would position the deal as incremental scale in a much larger market. Netflix is pushing regulators toward the latter interpretation.

Sarandos paired that argument with a political appeal grounded in Netflix’s domestic economic footprint. The company’s productions have supported more than 150,000 U.S. jobs over the past decade and contributed over $225 billion to the U.S. economy, he said, adding that Netflix plans to spend $20 billion on film and television production in 2026, with most of that investment directed toward U.S.-based projects.

While Sarandos has taken the lead publicly, Peters represents the operational logic behind the acquisition. Rose through Netflix’s product and engineering ranks before serving as COO and chief product officer, Peters embodies the company’s identity as a global distribution platform. His chief revenue and strategy officer, Bruce Campbell, emphasized during the Senate hearing that the deal represents a vertical integration of Netflix’s distribution capabilities and WBD’s IP assets, rather than the elimination of a direct competitor.

Sarandos also sought to ease regulators’ concerns that Netflix’s acquisition of WBD’s film studio could further weaken the theatrical business. He pledged that Netflix would preserve a “meaningful theatrical window” for WBD releases, pointing to a 45-day exclusive run in cinemas as the baseline.

Netflix staffs up Washington as Paramount escalates shareholder pressure

Netflix has added deal-specific Washington muscle. The company brought in Seth Bloom, a longtime Senate Judiciary Committee antitrust staff leader who later founded a strategic advisory firm, to help navigate the regulatory and political push. The hire signals Netflix expects sustained engagement not only with Justice Department officials but also with lawmakers who have increasingly used hearings and public pressure to shape merger outcomes.

The Justice Department’s review remains the biggest unknown. The process has moved beyond its earliest phase, with regulators conducting broader outreach to industry participants as part of their scrutiny.

Shareholders represent another battlefield. Ellison has signaled he’s willing to raise his bid further. Paramount has also sharpened its pitch around deal certainty, targeting two risks WBD has cited in rejecting its hostile offer: regulatory delay and the cost of terminating the Netflix agreement. Paramount has proposed quarterly payments to WBD shareholders if a deal remains pending after year-end and said it would cover the $2.8 billion breakup fee WBD would owe Netflix if it accepts a competing offer.

Activist investors add further pressure. WBD shareholder Ancora Holdings has announced plans to oppose the Netflix deal in favor of Paramount’s bid, arguing that shareholders should not accept a structure that forces them to assume execution and regulatory risk when a higher cash offer is available.

For now, WBD’s board remains aligned with Netflix. CEO David Zaslav and board chair Samuel Di Piazza Jr. said the company’s priority is “maximizing value and certainty,” while reaffirming their recommendation of the Netflix transaction.

Two dates now define the outcome. Paramount Skydance faces a Feb. 23 deadline to submit its final offer. WBD shareholders will vote on March 20 on whether to approve the Netflix deal. Netflix’s leadership is working to ensure that, by the time those decisions arrive, its acquisition is viewed less as a contested gamble and more as the inevitable outcome.