Netflix responds to WBD concerns

In a move that has shocked Hollywood, Netflix recently announced his plans to buy Warner Bros. Discovery (WBD) for $82.7 billion. Responses from companies It has often been negative, raising concerns about job losses, the future of theater, and the representation of different voices in film and television.

Netflix CEOs Greg Peters and Ted Sarandos have tried to address fears about the deal in a letter to employees, which was announced by Bloomberg on Monday.

The management assured the workers that they are committed to preserving the WBD films. He added that “there will be no mergers or studio closures.”

Officials from the organization also said that “the agreement is about growth” and that the company is “supporting one of the most famous studios in Hollywood, supporting work, and ensuring a bright future for film and TV production.”

Despite these guarantees, Writers Guild of America (WGA) has been strongly opposed to the takeover, arguing that it violates antitrust laws designed to prevent takeovers.

In addition, the agreement has attracted the attention of lawmakers. Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal he gave a letter at the Justice Department’s Antitrust Division are expressing concern about the potential risks of large-scale mergers in the entertainment industry.

Officials say that, in addition to raising ethical questions, the new media giant will have “more market power than existing companies to raise prices for consumers,” especially at a time when middle-class families are facing rising prices. Notably, Netflix raised its subscription prices last January.

To address those concerns, Peters and Sarandos cited Nielsen data in their letter that they say shows that combining Netflix and WBD would result in a smaller share of viewers than YouTube currently has, or what a Paramount-WBD merger would create.

The letter comes after Very important making a $108.4 billion bid to take over WBD, showing that the race for control of the media is far from over. Paramount was initially seen as a major competitor; however, Price CNBC said that the WBD rejected the offer.