Netflix exec calls DOJ probe into $82.7B Warner Bros contract ‘totally normal’
Netflix’s chief global affairs officer Clete Willems discusses the company’s planned acquisition of Warner Bros. Discovery and the Justice Department’s antitrust investigation into the ‘Claman Countdown’ deal.
Netflix’s head of global affairs Clete Willems spoke about the recently launched investigation into the acquisition of the company Warner Bros. Discovery Monday on “Claman Countdown.”
“This is just normal business,” Willems said. “Yes, the Department of Justice is going to investigate this transaction and make sure it’s good for our economy and good for consumers.”
The Justice Department has opened an investigation into whether Netflix used anti-competitive tactics in its $82.7 billion acquisition of Warner Bros. and HBO Max, the Wall Street Journal reported Friday.
In his first public comments about the Warner Bros. merger, Willems stressed that the DOJ’s investigation is not a concern of the streaming giant and said the company is working closely with the DOJ.
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Netflix announced a partnership with global beer producer Ab InBev on Monday. (Photos by Mario Tama/Getty/Getty Images)
“I’m excited for Netflix to have the opportunity to reach out to the Department of Justice and talk to policymakers to explain how big this deal will be for the US economy and consumers,” he told Fox Business.
Netflix announced its proposed acquisition of Warner Bros. in December. Days later, Paramount Skydance submitted a cash offer that countered all of it.
While Warner Bros. unanimously rejected Paramount’s offer and stood by its commitment to Netflix, the DOJ subpoena examines whether the potential acquisition could harm competition, the WSJ reported.
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Willems criticized Netflix’s rival petitioner, noting that Paramount failed to appear in a Senate hearing, while Netflix participated.
“Netflix is very open and clear about this agreement and all its consequences, and Paramount, as you know, did not show the hearing. So I think there is a clear difference,” he said.
Netflix agreed last year to acquire the film and television studios of Warner Bros. Discovery and streaming platform HBO Max in a cash and stock deal worth $27.75 per Warner Bros. share. Discovery. (Photos by Anna Barclay/Getty Images)
The Netflix executive also highlighted Paramount’s recent business challenges, saying Netflix is in a better position to acquire a major studio like Warner Bros.
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“We’re tripling jobs, and Paramount has cut 3,500 jobs in recent years,” he said. “Paramount identified $6 billion in sales that they made, which is $6 billion in layoffs.”
Willems also detailed the consumer benefits that will come from the Netflix deal.
Warner Bros. Discovery announced on Wednesday that its board had unanimously rejected Paramount’s tender offer. (Photos by Mario Tama/Getty/Getty Images)
“We’ll have more content, we’ll have less money, and we’ll have things in theaters,” he said. “We’ll keep Warner Brothers shows in theaters. So there’s going to be a lot of consumer benefits here that I think people would be happy about. “
Warner Bros. said it plans to hold an investor meeting in April to vote on the Netflix deal.
An antitrust representative at the DOJ did not immediately respond to FOX Business’ request for comment.
