Netflix co-CEO Ted Sarandos has now broken his silence after dropping out of the bidding war for Warner Bros. Discovery, conceding defeat to Paramount Skydance. However, Sarandos warned that the rival’s debt-heavy acquisition will come at a steep cost for Hollywood. Speaking to Bloomberg in an interview, Sarandos revealed that Netflix had planned for multiple scenarios in advance and also knew immediately that it would not match Paramount’s final offer. “We knew right away, when we got the notice on Thursday that they had a superior offer and the details of that deal. We knew exactly what we were going to do,” he told Bloomberg.Netflix had capped its bid at $27.75 a share and refused to chase Paramount’s unprecedented $111 billion personal guarantee-backed deal.
Paramount’s debt burden
Sarandos warned that Paramount’s financing strategy will force to thousands of layoffs. He also said that CEO David Ellison is expected to slash $16 billion in costs and also eliminate thousands of jobs. “It would be less production, less people working,” Sarandos cautioned, predicting a ripple effect across Hollywood’s creative workforce.
Regulatory and political pressure
The Netflix bid had faced pushback from Labour unions, politicians and industry figures such as director James Cameron, mainly due to Netflix’s history of limited support for move theatres. Sarandos stressed that regulatory scrutiny was routine and also said that the DOJ inquiry in now complete, adding, “We’re in the clear.” He dismissed speculation that political resistance influenced Netflix’s withdrawal, noting that the president remained neutral.Despite losing Warner Bros., Sarandos revealed that Netflix will continue to expand its theatrical footprint. He highlighted recent collaborations with cinema owners and teased upcoming releases like One Piece in theaters. “I think we’re going to find a bunch of cool things to do together going forward,” he said.Netflix co-CEO also emphasised that Netflix remains focused on building rather than buying. The company will redirect the $2.8 billion it saved by walking away into its core business. While acknowledging Warner Bros. was a “unique asset,” he insisted Netflix’s growth does not depend on acquisitions.
