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Well, it was bound to happen. The fact that a streamer, basically the enemy of everything theatrical in some quarters, has snared one of the most established names in Hollywood has sent a few people crazy.
Creatives and cinema owners have all criticized the deal.
This is despite Netflix confirming that it “expects to maintain Warner Bros.’ current operations” and “build on its strengths, including theatrical releases for films”. Netflix co-CEO Ted Sarandos said he will, however, apply pressure around the length of theatrical windows:
“We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in theaters. My pushback has been mostly in the fact of the long, exclusive windows, which we don’t really think are that consumer-friendly.
I wouldn’t look at this as a change in approach for Netflix movies or Warner movies, for that matter. I think over time the windows will evolve to be much more consumer friendly … to meet the audience where they are … all those things we’d like to do.
But I’d say that right now you should count on everything that has planned on going to the theaters through Warner Bros. will continue to go to the theaters through Warner Bros. And Netflix movies will take the same [path] as they have — which is some of them do have a short run in the theater beforehand.”
Exhibition’s biggest trade group, Cinema United, came straight out and said they aren’t up for it:
“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business.”
The unions have, of course, also chimed in. The WGA condemns the deal:
“…this merger must be blocked…”
The DGA says it has significant concerns and demands an immediate meeting with Netflix. SAG-AFTRA says they have “many serious questions” and the Hollywood Teamsters says they will call for the government and antitrust enforcers to “reject this deal and any other deal seeking the consolidation of power and market”.
So, all going swimmingly then? Across town at Paramount Skydance, there is, apparently, complete outrage as Netflix is paying $27.75 a share for that studio/streaming half, with a total equity value of $72 billion for the film and television studios, HBO Max, and HBO.
The The New York Post says that the Ellisons are ‘livid’ and that Paramount Skydance is now looking to launch a hostile bid for Warner Bros. Discovery, going direct to shareholders, because their $30 a share all cash offer for the entire operation is actually higher than Netflix when taken in the round in terms of cash, stock and the value of the spinoff of the cable business.
David Ellison – annoyed
In short, they will allege that the board at WBD has failed its fiduciary duty.
Reports say Zaslav turned to Netflix because Paramount Skydance is not making any money yet, and he was not clear who was bankrolling their bid. Netflix, meanwhile, is cash-rich and has a market cap of above $400 billion vs Paramount Skydance at $14.6 billion.
Grab your popcorn. This one might run for a while.
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