In a move that’s sending ripples through Hollywood, Netflix co-CEOs Ted Sarandos and Greg Peters just made something crystal clear: Warner Bros. movies aren’t ditching theaters anytime soon. The streaming giant’s leadership addressed employee concerns head-on in an internal memo that became public through an SEC filing this week, and their message is surprisingly pro-cinema.
The memo comes at a critical moment. Netflix announced its massive acquisition of Warner Bros. studios, HBO, and HBO Max on December 5 for a whopping $82.7 billion. Since then, the deal has faced everything from regulatory scrutiny to a hostile counterbid from Paramount Skydance. But amid all the chaos, one question kept popping up: what happens to the big screen?
Netflix’s theatrical commitment
For a company that built its empire on couch-based binge-watching, this is quite the plot twist. Sarandos and Peters didn’t mince words when employees asked about Warner Bros.’ theatrical future. They pledged full commitment to releasing Warner Bros. movies in theaters exactly as the studio does today.
The CEOs pointed to recent blockbusters like Minecraft and Superman as examples. Had this deal happened two years earlier, those films still would’ve premiered on the big screen, and that’s the plan moving forward. It’s worth noting that Netflix hasn’t exactly been theater-friendly historically. Sarandos himself once called the theatrical model “outdated”, and the company typically only gave select films limited runs for awards consideration.
But here’s the thing: Warner Bros. brings something Netflix doesn’t have, a century-long theatrical legacy and existing deals with cinema chains through 2029. The CEOs acknowledged this shift in their memo, stating they haven’t prioritized theatrical before because it simply wasn’t their business. Once this deal closes, that changes.
Hollywood’s future isn’t ending
The memo also tackled the elephant in the room: fears that this merger signals Hollywood’s demise. Sarandos and Peters pushed back hard against that narrative. They’ve been hearing the “end of Hollywood” talk since they started streaming, they noted, and their stance remains unchanged, this is a win for the entertainment industry, not its funeral.
Their argument centers on growth rather than consolidation. Warner Bros. brings capabilities and businesses Netflix doesn’t currently have, meaning no overlapping operations or studio closures. The deal aims to strengthen one of Hollywood’s most iconic studios while supporting jobs and ensuring a healthy future for film and TV production.
Of course, there’s still the Paramount Skydance situation to deal with. Days after Netflix’s announcement, David Ellison took his $30-per-share offer directly to Warner Bros. Discovery shareholders, valuing the company at $108.4 billion. But Netflix’s CEOs remain confident, calling the hostile bid “entirely expected” while expressing genuine excitement about what lies ahead.
The road ahead
The acquisition isn’t a done deal yet. It needs to survive regulatory approval, and there are legitimate antitrust concerns given that Netflix would control two major streaming platforms. The transaction is expected to close in the third quarter of 2026, assuming Warner Bros. Discovery completes its planned separation of Discovery Global first.
For now, Netflix leadership is telling employees to stay focused on delivering for members while a small team of experts handles the complex integration work. Whether this ambitious bet pays off remains to be seen, but one thing’s certain: the streaming wars just entered their most dramatic act yet.
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