Ted Sarandos isn’t hiding his frustration at the hurdle that emerged Tuesday in Netflix‘s plan to acquire Warner Bros. and HBO Max through an $83 billion sale agreement reached in December.
Sarandos told CNBC in an interview Tuesday that Paramount Skydance has spread falsehoods designed to destabilize the Netflix transaction. Under pressure from shareholders, WBD sought a seven-day waiver from Netflix in order to begin new negotiations with the Paramount group. Netflix granted the waiver in an effort to end the uncertainty and move on with a key shareholder vote that has been set for March 20.
Paramount Skydance has been on a campaign of “flooding the zone with misinformation, creating a bunch of what-ifs and scenarios that are very wild, and even in any end of that range, let alone the top end of that range,” Sarandos told CNBC’s Julia Boorstin. “The most likely outcome is, there’s no adjustment at all. Warners had been very clear that their intent is to maximize cash for the shareholders.”
Sarandos asserted his confidence that Netflix will complete the deal, nor does he see any reasons for the federal goverment to “block the deal.” He also took aim at Paramount Skydance CEO David Ellison’s assertions that it would have an easier path toward securing regulatory approval for the deal than Netflix, given the streaming giant’s stature in entertainment’s new world order.
Paramount Skydance “does not have a faster regulatory path. I don’t know why the Ellisons would insinuate they have some inside track in the Department of Justice, but I can assure you they don’t, and that, and in terms of our regulatory in Europe and around the world, we are known entities and trusted entities with all the players in Europe,” Sarandos said. “And, in fact, our deal, by not acquiring Discovery Global, we don’t disrupt the European broadcast system at all.”
Sarandos explained that granting the waiver to allow WBD to engage in talks with Paramount, despite the signed acquisition agreement, was an effort to allow the deal to move forward.
“We have given the opportunity to get those shareholders exactly what they deserve, which is complete clarity and certainty about what the value of these deals are,” Sarandos said. “And what we’re certain is, is that the Netflix deal to acquire these assets is the best deal, generates the best value for their shareholders. And they think so too. That’s why they recommended the deal and why they reiterated recommending that deal post this. So give them seven days to put their money where their mouth is.”
Sarandos would not get into specifics when pressed about the notion floated in WBD’s Securities and Exxchange Commission filings that a Paramount source had floated the idea of raising the company’s bid to $31, from $30 where it stands at present.
“Our goal here is to make sure that folks take the seven days to figure out exactly where they stand. And then, on March 20, there is a vote and they will make the decision. And we’re confident that the Warner Bros. Discovery board, which continues to endorse this [Netflix] deal, and the shareholders will come to the same conclusion — that this is the best value for Warner Bros. Discovery,” he said.
