Netflix CEO: We Knew What We Were Gonna Do

Netflix co-CEO Ted Sarandos, in his first interview since Netflix withdrew its bid for Warner Bros. Discovery (WBD) in late February, emphasized that the decision was driven purely by financial discipline, not politics or regulatory issues.

Netflix stuck to a pre-set price ceiling and quickly walked away when Paramount Skydance submitted a superior offer with stronger financing guarantees. “We knew right away, when we got the notice on Thursday that they had a superior offer and the details of that deal,” Sarandos told Bloomberg. 

“We knew exactly what we were gonna do.”

He dismissed speculation about political pressure or DOJ hostility influencing the move, calling the regulatory review process “completely normal” and stating, “Yeah, we’re in the clear.”

Ted Sarandos

Sarandos described the potential acquisition as a “strategic opportunity” rather than a necessity for Netflix's growth, saying, “We definitely wanted this asset. We didn’t need it.” He reinforced the company's identity as “builders, not buyers,” focused on organic investment over overpaying for deals.

The Netflix leader warned that Paramount Skydance's highly leveraged takeover could lead to aggressive cost-cutting at the combined entity, potentially reducing production volumes and jobs across Hollywood by billions in savings.

Despite past opposition from theater owners during the bidding, Sarandos indicated Netflix remains open to expanding its theatrical presence through future collaborations with cinema chains, saying, “I think we’re gonna find a bunch of cool things to do together going forward.”

For investors, Sarandos framed the withdrawal as a demonstration of strong capital stewardship—Netflix prioritizes disciplined valuation thresholds and will continue growing internally rather than chasing acquisitions at any cost.