Netflix CEO Greg Peters expressed deep concern about severe job cuts in Hollywood following Paramount's acquisition of Warner Bros Discovery. Peters, speaking to the Financial Times, stated he was 'nervous' about the industry-wide impact, particularly as Netflix withdrew from the bidding war days earlier. He estimated Paramount would need to cut $16bn to make its $111bn deal work, far exceeding the $6bn in synergies the company claims the merger will generate. 'I don't know how they can make it economically viable,' Peters said, questioning the deal's logic. The debt load of $54bn Paramount is using in the transaction leaves the combined studio, streaming and news group in a 'precarious position', Peters added, calling the debt 'a bit of a precarious position' and admitting he'd be 'nervous' about such a load himself.

Netflix's withdrawal came after it refused to match Paramount's increased offer, insisting WBD was a 'nice to have' at the right price but not a 'must have' at any price. The streaming giant also faced regulatory scrutiny, with former President Trump calling the combined companies 'a problem' due to Netflix's market share. While Netflix claimed it could have won approval, it acknowledged vocal opposition from Hollywood executives worried about its commitment to theatrical releases. Peters specifically questioned Paramount's pledge to release 30 films annually, suggesting the company would struggle to deliver '30 good theatrical releases'.

Netflix secured a $2.8bn break fee from Paramount, which Peters described as a 'nice concession prize' allowing the company to 'deliver more value for our members' through new formats like video podcasts and interactive games. Despite some internal disappointment, Netflix plans to capitalize on Paramount's distraction over the next 18 months, maintaining its 'build not buy' strategy while keeping an eye out for future large-scale opportunities. 'This Warner Brothers style deal is pretty rare,' Peters noted, suggesting limited immediate activity in this space.