Netflix co-CEO Ted Sarandos has publicly addressed the company’s unsuccessful attempt to acquire Warner Bros. Discovery for the first time.
Speaking in an interview, Sarandos reflected on the bidding process and questioned the nature of the competing offer that ultimately prevailed.
In a conversation with Bloomberg’s Lucas Shaw, Sarandos described the rival bid — which came from Paramount — as “unusual” and “irrational.”
He suggested the process had taken an unexpected turn, implying that factors beyond straightforward financial valuation may have been at play.
Despite the loss, Sarandos said he remains confident in Netflix’s long-term strategy. He even indicated that the outcome could ultimately benefit the streaming giant, though he added he hoped to be wrong “for the sake of the industry.”
Claims of political pressure
Sarandos also addressed speculation that political dynamics may have influenced Warner Bros. shareholders.
He referenced suggestions that pressure from Donald Trump may have played a role during the process.
According to Sarandos, “it is a lot cheaper to make noise than it is to actually raise your bid,” suggesting that political signaling may have been used as a tactic before it became clear Netflix was not pursuing CNN as part of the proposed deal.
He noted that once it was evident CNN was not included in Netflix’s plans, interest in their offer appeared to decline.
Why Netflix stepped back
Explaining the company’s withdrawal, Sarandos said Netflix maintained a strict valuation range throughout negotiations.
While the company adjusted its structure to an all-cash proposal in order to speed up proceedings, it did not significantly move beyond its original financial parameters.
Once Netflix was informed that a superior bid had been submitted, Sarandos said the decision to step aside was immediate and decisive.
What it means for the industry
The failed acquisition attempt marks a significant moment in the evolving media and streaming landscape.
While Paramount’s successful bid reshapes the competitive field, Netflix appears determined to stay disciplined in its financial strategy rather than engage in bidding wars beyond its valuation framework.
Sarandos’ comments suggest that, despite the high-profile loss, the company sees long-term opportunity in sticking to its principles.
