Netflix co-CEO Ted Sarandos is pushing back after James Cameron urged federal lawmakers to scrutinize Netflix’s proposed purchase of Warner Bros. Discovery’s studio and streaming assets, warning that the deal could squeeze theatrical releases and ripple through below-the-line jobs. Cameron, in a letter to Sen. Mike Lee, wrote that Netflix’s business incentives clash with the needs of theaters and predicted closures and layoffs if Warner Bros.’ pipeline shrinks.
Sarandos, speaking on Fox Business, said he felt “surprised and disappointed” that Cameron repeated what he called a “Paramount disinformation campaign.” He said he met with Cameron in late December and laid out a plan to keep Warner Bros. films in theaters for 45 days before they hit streaming, adding that he has stated that commitment publicly and under oath in prior Senate testimony. Sarandos also rejected the claim that Netflix intended to use a 17-day window, saying he has “never even uttered” that idea.
The exchange lands as Warner Bros. Discovery prepares for a March 20 shareholder vote on Netflix’s offer while continuing to field pressure from a competing all-cash bid led by Paramount Skydance. Warner recently reopened talks with Paramount for a limited period after receiving a waiver from Netflix, even as Warner’s board continued to recommend the Netflix transaction.
Analysts and investors are also watching whether Netflix increases its price. Reuters reported that Netflix ended 2025 with about $9.03 billion in cash and cash equivalents, giving it room to raise its offer if Paramount sweetens terms further. The board’s decision calculus has turned on price, financing certainty, and regulatory risk, with U.S. antitrust review already intensifying around questions of how a streaming-led owner might handle theatrical distribution.
