Following disputes between Netflix and Paramount over the purchase of Warner Bros. Discovery, Paramount CEO David Ellison sent a letter to Warner Bros. shareholders. in which he encourages them to “make clear to the management of Warner Bros. their interest in the transaction with Paramount”, which according to him would be the most advantageous.
“We financed, founded and then merged Skydance with Paramount and know the sacrifices and investments required to capitalize and grow a media company,” Ellison wrote in the letter sent Wednesday. “I am passionate and dedicated to this business, determined to invest my own money, which is why I am writing to you today,” he adds.
The document further reinforces Paramount’s perception that the deal between Netflix and Warner Bros. this would underestimate the true value of the television networks owned by them. Paramount also reaffirms value of US$30 per share, in cash, to acquire Warner Bros. Networks. this is a superior offer to that offered by Netflix.
After Netflix announced an $82.7 billion deal to buy Warner Bros., which now must be approved by the U.S. government, Paramount made a $108.4 billion offer on Monday. This strategy has heated up a conflict that had already been shaking Hollywood for weeks.
As part of the pressure on the company that will be acquired, Paramount also detailed its plans for the future of the audiovisual market. According to studio representatives, the idea is to release more than 30 films per year in theaters, with the aim of honoring “traditional and healthy screening windows.” The statement flies in the face of expectations circulating among experts regarding a possible acquisition by Netflix, who are betting on the decline of theatrical distribution.
“We love film and the entertainment industry,” said Paramount CEO David Ellison. “We believe in the future (of this industry) and want to help preserve and strengthen it. Film is one of America’s most important exports. We want to help that legacy, not diminish it.”
In turn, Ted Sarandos, the CEO of Netflix, said last week that traditional releases would remain a reality and that the approaches used in Netflix and Warner films would not undergo major changes. He also said that the duration of exclusivity windows in cinemas should decrease, so that watching films becomes more “comfortable for spectators”.
This Monday, Sarandos said that the offer made by Paramount was already expected, and that the plans between Netflix and Warner must remain firm. “We reached a deal and we’re very happy with it. It’s great for shareholders, great for consumers. We think it’s a great way to create and protect the work of the entertainment industry. We’re confident we’ll cross the finish line. So we’re ready,” the Netflix CEO said.
Sarandos also spoke about the possible future of HBO, which is owned by Warner Bros. and your collection may be acquired by Netflix if the purchase is completed. According to him, the brand would focus again on “prestige productions” and would no longer need to “turn towards the production of popular entertainment”.
The executive claims that HBO gained its popularity through its “prestige” series and that Netflix’s presence would already guarantee a well-established brand of “popular entertainment content.”
In recent years, HBO has launched series based on successful franchises such as “Dune”, “It – The Thing”, and is already producing titles that adapt the books of the “Harry Potter” series and the comics about the hero Green Lantern, from DC Comics.
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