According to Fortune, Netflix co-CEOs Ted Sarandos and Greg Peters addressed investors at a UBS conference on Monday, just days after announcing an almost-$83 billion deal to buy most of Warner Bros. Discovery. They brushed off a hostile bid from Paramount Skydance for all of WBD that same morning as “entirely expected,” insisting their deal is done and “great for shareholders.” The executives outlined a three-phase plan to license content, boost HBO, and leverage Warner’s IP library. This comes as Netflix stock fell 6% over two sessions following the deal’s announcement, with analysts labeling the price “exorbitant,” and the stock is down over 20% in six months. Sarandos also confirmed conversations with President Donald Trump, who reportedly said the combined market share “could be a problem.”
Netflix’s Confidence Game
Look, the public messaging from Sarandos and Peters is a masterclass in corporate calm. “We have a deal done.” They said it repeatedly. But here’s the thing: when you have to say you’re “incredibly happy” that many times in one sitting, it starts to feel like you’re trying to convince yourself as much as the market. The stock drop tells the real story—investors are spooked by the price tag and the sheer pivot this represents for Netflix, a company built on organic growth. Peters even admitted, “We haven’t done this before.” That’s a huge understatement. They’re going from being the disruptive streamer to becoming a legacy media conglomerate overnight, and Wall Street hates uncertainty.
The Real Synergy Play
So what’s Netflix’s actual plan? It’s basically to do what it’s always done, but with the biggest content vault in Hollywood now under its direct control. Peters talked about maximizing asset value on their platform, which is corporate-speak for: we know how to make old shows hit big (hello, Suits). The most interesting strategic nugget was Sarandos taking a shot at HBO’s recent identity crisis, saying they’ve been “doing gymnastics” to be a general brand. His vision? Let HBO go back to being the pure prestige arm. That’s smart. It also lets Netflix be the everything-for-everyone service while HBO wins awards. And the jobs argument? It’s pure politics. Sarandos is already wooing Trump with employment stats, while painting Paramount’s bid as a job-killer. He’s playing regulatory chess.
The Antitrust And Theater Problem
Now, the regulatory defense is where it gets clever. Peters threw out that 8% of U.S. TV hours stat, saying adding HBO only gets them to 9%. “We’d still be behind YouTube,” he said. That’s a very specific, narrow way to frame market dominance, and it’s clearly meant for the DOJ’s ears. But let’s be real—in the streaming-on-TV world, combining Netflix and HBO Max is a powerhouse. Other metrics show a combined share over 20%. Then there’s the theatrical olive branch. Sarandos, who once called theaters “outmoded,” now says, “We didn’t buy this company to destroy that value.” I’ll believe it when I see it. This feels less like a change of heart and more like a necessary concession to smooth over a deal that’s already making Hollywood unions and theater owners panic.
A Very Risky Bet
Bottom line? Netflix is making the biggest bet in its history. The co-CEOs project serene confidence, but the analyst reaction and stock plunge show deep skepticism. Can a company famous for its algorithm and lean operations successfully digest a massive, messy legacy studio? And what happens when the “builder” tries to become the ultimate “buyer”? The Paramount bid is probably just noise, but it highlights that this asset was in play. Netflix is paying top dollar at a moment when its own growth is slowing. They’re not just buying content; they’re buying time and market position. It’s a huge, risky swing—and even they admit they’ve never played this game before.
