Netflix (NFLX.US) has promised to maintain movie theater releases while exploring the acquisition of Warner Bros. Discovery Company's (WBD.US) streaming business.

Insiders say that Netflix (NFLX.US) has informed the management of Warner Bros. Discovery (WBD.US) that if they successfully acquire the company's film and streaming business, they will continue to release their movies in theaters. The sources say that Warner Bros. has contracts in place for theatrical releases of its movies, and Netflix will abide by these agreements. So far, Netflix has been reluctant to release its movies in theaters and has become a major competitor to Hollywood's biggest studios without taking this step. The possibility of acquiring Warner Bros.' extensive film library and the contractual obligations have softened their stance. Warner Bros. decided to sell itself after receiving acquisition offers, including one from Paramount. Netflix and NBCUniversal's Comcast Corporation Class A are interested in the studio and streaming business. The deadline for bids is Thursday. For Netflix, a deal with Warner Bros. would be their largest acquisition ever. Company executives have made presentations to Warner Bros. management. The film industry is concerned that a deal between Warner Bros. and Netflix will reduce another major source of movies for theaters. Netflix has previously released some movies in theaters for awards eligibility and to placate talent. Netflix co-CEO Ted Sarandos has described theaters as a dying industry and stated that the company's primary focus is meeting the demands of streaming customers.