Netflix chief global affairs officer Clete Willems discusses the company’s planned acquisition of Warner Bros. Discovery and the Department of Justice’s antitrust probe into the deal on ‘The Claman Countdown.’
Netflix chief global affairs officer Clete Willems addressed a newly launched federal probe into the company’s proposed acquisition of Warner Bros. Discovery Monday on “The Claman Countdown.”
“This is just ordinary course of business stuff,” Willems said. “Of course, the Department of Justice is going to investigate this transaction and make sure that it’s good for our economy and good for consumers.”
The Justice Department has opened an investigation into whether Netflix used anti-competitive strategies in its $82.7 billion acquisition of Warner Bros and HBO Max, The Wall Street Journal reported Friday.
In his first public comments on the Warner Bros merger, Willems insisted that the DOJ probe poses no concern for the streaming giant and said the company is actively working with the DOJ.
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Netflix announced a partnership with global beer producer Ab InBev on Monday. (Mario Tama/Getty Images / Getty Images)
“I’m excited for Netflix to have the opportunity to engage with the Department of Justice and engage with policymakers to explain how great this deal is gonna be for the US economy and for consumers,” he told Fox Business.
Netflix announced its proposed acquisition of Warner Bros in December. Days later, Paramount Skydance submitted a counter-all-cash offer.
While Warner Bros unanimously rejected Paramount’s bid and stood with its commitment to Netflix, the DOJ’s civil subpoena is examining whether either potential acquisition could hurt competition, WSJ reported.
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Willems criticized Netflix’s rival bidder, noting that Paramount failed to appear for a Senate hearing, while Netflix participated.
“Netflix has been very open and transparent about this deal and all of its implications, and Paramount, as you know, didn’t show for the hearing. So I think there’s a clear difference,” he said.
Netflix agreed last year to acquire Warner Bros. Discovery’s film and television studios and streaming platform, HBO Max, in a cash-and-stock deal valued at $27.75 per Warner Bros. Discovery share. (Anna Barclay/Getty Images / Getty Images)
The Netflix executive also highlighted Paramount’s recent business challenges, arguing Netflix is better positioned to acquire a major studio like Warner Bros.
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“We’re tripling jobs, while Paramount has cut 3,500 jobs in recent years,” he claimed. “Paramount have identified $6 billion in synergies in the offer that they made, which is code for $6 billion in job cuts.”
Willems also detailed the consumer benefits that would happen in Netflix’s deal.
Warner Bros. Discovery announced on Wednesday that its board unanimously rejected Paramount’s tender offer. (Mario Tama/Getty Images / Getty Images)
“We’re gonna have more content, we’re gonna have less money, and we’re gonna have things in the theaters,” he said. “We’re gonna keep Warner Brothers shows in the theater. So there’s gonna be lots of great consumer benefits here that I think people can be excited about.”
Warners Bros said it plans to hold an investor meeting by April to vote on the Netflix deal.
An antitrust representative at the DOJ did not immediately respond to FOX Business’ request for comment.