Key points of the letter include:
Netflix still intends to acquire Warner Bros. because it wants the film franchises, the large archive of older films, and the production studios that will complement its business.
The hostile bid from Paramount's Skydance was anticipated from the start. Netflix has the advantage of having already signed a deal and is confident of achieving its goal.
Netflix believes regulatory approval will be successful. The acquisition would increase Netflix's share of the US television audience from 8% to 9%, still trailing YouTube's 13% and Paramount's 14% if they acquired Warner Bros. Discovery.
If the acquisition of Warner Bros. is successful, Netflix will continue to distribute Warner Bros. films in theaters. In the past, Netflix didn't consider theatrical distribution because it wasn't in that business before. Owning Warner Bros. would put it in the spotlight.
The acquisition of Warner Bros. does not mark the end of Hollywood cinema. But this is a growth acquisition. The two companies have no overlapping businesses; no studios will be closed. What Netflix will do is strengthen Warner Bros.
For now, Netflix will continue operating as normal, and a separate team will handle acquisition deals to maintain focus on the core team.
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