Netflix Co-CEO Greg Peters Expects Netflix to Win WBD, Says Paramount's Bid 'Doesn't Pass the Sniff Test'

In a candid assessment of the ongoing battle for Warner Bros. Discovery, Netflix co-CEO Greg Peters has positioned his company as the clear frontrunner, dismissing a rival bid from Paramount Global as fundamentally lacking substance. The comments, made in an interview, highlight the intense strategic maneuvering behind what could become one of the most significant media mergers in years.

Peters stated that Netflix is "winning" the support of WBD shareholders, a claim that carries significant weight given the financial stakes involved. He specifically criticized Paramount's proposed acquisition, stating it "doesn't pass the sniff test." This colloquial expression suggests Peters believes the bid is either financially unsound, structurally problematic, or lacks the strategic clarity needed to gain regulatory or shareholder approval. He further noted that only a "very small" number of WBD holders had backed the Paramount offer, implying that the broader market views Netflix's potential involvement as more credible.

This public positioning is a classic move in merger negotiations. By declaring confidence and casting doubt on a competitor's proposal, Netflix is attempting to shape the narrative and influence shareholder sentiment ahead of any formal vote. The statement serves multiple purposes: it reassures Netflix's own investors that the company is pursuing a disciplined strategy, it puts pressure on WBD's board to consider Netflix's terms more seriously, and it undermines the perceived viability of the Paramount bid.

The context for this corporate drama is the ongoing financial and strategic pressure on Warner Bros. Discovery. The company, formed from the merger of WarnerMedia and Discovery, has faced challenges in integrating its vast portfolio of assets, which includes HBO, Warner Bros. film and TV studios, CNN, and a large library of legacy content. Its stock performance has been volatile, and it has been carrying significant debt. This has made it a target for potential acquirers looking to consolidate media assets in an increasingly competitive streaming landscape.

Netflix, for its part, has evolved from a pure-play streaming service into a more diversified media entity. It has invested heavily in original content, built a formidable global subscriber base, and more recently, introduced an ad-supported tier to capture additional revenue. An acquisition of WBD would be a monumental leap, instantly giving Netflix access to one of the deepest content libraries in the world, including iconic franchises like Harry Potter, DC Comics, and a massive catalog of television series and films. It would also provide a significant boost to its advertising business, given WBD's existing linear TV and cable assets.

However, the path to such a deal is fraught with complexity. Regulatory scrutiny would be intense, particularly in the United States and Europe, where antitrust concerns about concentrating media power would be paramount. Combining Netflix's streaming dominance with WBD's vast content and distribution assets would likely trigger a lengthy review process. The financial engineering required would also be substantial, given WBD's market capitalization and debt load.

Peters' comments suggest that Netflix believes it can navigate these challenges more effectively than Paramount. Paramount, itself a legacy media company with assets like CBS, Paramount Pictures, and a growing streaming service (Paramount+), faces its own integration hurdles. A Paramount-WBD merger would create a larger traditional media conglomerate, but it might struggle to achieve the same level of streaming synergy that a Netflix-WBD combination could theoretically offer. Netflix's global streaming infrastructure and data-driven approach to content could, in theory, extract more value from WBD's library than a company still building its own digital platform.

The mention of shareholder support is critical. In a potential bidding war, the target company's shareholders ultimately decide which offer to accept. By claiming that only a small fraction of WBD shareholders are backing Paramount, Peters is attempting to create a bandwagon effect, signaling that the smart money is with Netflix. This is a psychological tactic as much as a financial one, aiming to persuade undecided shareholders that supporting Netflix is the safer, more lucrative path.

It's important to note that these are statements from one interested party. Paramount and WBD have not publicly commented on the specifics of Peters' remarks. The financial terms of any potential bid from Netflix remain unknown, and the company has not formally announced an offer. The situation is fluid, with other potential suitors or strategic partnerships always a possibility in the dynamic media industry.

Ultimately, Peters' confident tone underscores the high stakes. The media landscape is consolidating, and companies are seeking scale to compete with deep-pocketed tech giants like Amazon, Apple, and Alphabet. For Netflix, acquiring WBD would be the ultimate transformation, turning it from a disruptor into a dominant, integrated media powerhouse. For WBD, it could provide a clear path to stability and a powerful future. And for Paramount, it represents a chance to avoid being left behind in a rapidly shrinking field of independent media companies.

The battle for Warner Bros. Discovery is far from over, but Greg Peters has just made a bold opening move, setting the stage for what could be a protracted and high-stakes corporate contest.