Netflix co-CEO Greg Peters has rejected Paramount Skydance’s proposed $108 billion hostile takeover of Warner Bros. Discovery (WBD) as unrealistic without the financial backing of Oracle founder Larry Ellison. Peters said in an interview with the Financial Times that Paramount’s proposal “has not passed the sniff test” and is overly reliant on debt and external support. He contrasted this with Netflix’s revised $82.7 billion all-cash offer, which he argued was much more stable. “The additional leverage required for Paramount’s bid is pretty crazy,” Peters said.

Shareholder support leans towards Netflix

According to reports, after the board of directors rejected the offer, Paramount accepted the offer directly to WBD shareholders. But according to early filings, Paramount has secured only about 7% of WBD’s stock, far short of the majority needed to gain control. Analysts also note that Netflix’s cashback offer is gaining stronger support among investors wary of debt-heavy deals.

Hollywood influence and regulatory oversight

A potential merger between Netflix and Warner Bros. would reshape Hollywood by combining franchises like Game of Thrones and Harry Potter with Netflix originals like Stranger Things and Squid. The merger has raised concerns among filmmakers, unions and theater owners about Netflix’s growing influence over theatrical releases.Peters sought to allay those concerns by promising that Netflix would respect Warner Bros. Traditional 45-day theatrical period. U.S. and European regulators are expected to closely scrutinize the deal, given its far-reaching implications for competition and consumer choice.Peters emphasized that Netflix’s competition goes beyond traditional studios, citing YouTube, Amazon.com and Apple as competitors in the streaming and entertainment space. He also noted that in most markets, Netflix accounts for less than 10% of TV viewing time, highlighting the fragmented nature of global media consumption.