Netflix Inc. (NASDAQ:NFLX) co-CEO Greg Peters said Paramount Skydance’s (NASDAQ:PSKY) $108 billion hostile bid for Warner Bros. Discovery (NASDAQ:WBD) is unrealistic without Oracle Corp (NYSE:ORCL) founder Larry Ellison’s financial backing.
Netflix co-chief executive Greg Peters sharply criticized Paramount’s rival bid for Warner Bros. Discovery, saying the offer “doesn’t pass the sniff test” and would collapse without Ellison’s personal support.
In an interview with Financial Times, Peters said Paramount’s proposal relies heavily on debt and external backing, making it far riskier than Netflix’s revised $82.7 billion all-cash offer for WBD’s film and television studios, including HBO and Warner Bros.
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Peters called that additional leverage required for Paramount’s bid “pretty crazy.”
Paramount has taken its bid directly to WBD shareholders after the company’s board rejected it, but early signs suggest limited traction.
According to a proxy filing, Paramount has secured roughly 7% of WBD shares, far short of the majority needed for control, the report noted.
A Netflix-Warner Bros combination would dramatically reshape Hollywood, uniting franchises such as “Game of Thrones” and “Harry Potter” with Netflix hits like “Stranger Things” and “Squid Game.”
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The prospect has unsettled filmmakers, unions and theater owners concerned about Netflix’s influence on theatrical releases.
Peters said Netflix would honor Warner Bros.’ typical 45-day theatrical window, pushing back against fears that the streamer would undermine cinemas.
Regulators in the U.S. and Europe are expected to closely examine both bids.
Peters argued that Netflix competes with a broad range of players, including YouTube, a subsidiary of Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL), noting that Netflix accounts for less than 10% of TV viewing hours in most markets.
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