Netflix stunned the entertainment world this week when it declined its bid for Warner Bros. Discovery, paving the way for Paramount Skydance to take ownership of the Hollywood studio.
At the time, Netflix co-CEOs Ted Sarandos and Greg Peters said they were financially disciplined. Now reporting in Bloomberg offers more details about why Netflix executives pulled out of a bidding war it appeared to be winning in December.
For starters, the streaming giant’s shareholders seemed highly skeptical about whether the acquisition was a good deal: Netflix’s share price fell 30% since the deal was announced, amid subsequent news that Netflix was pulling out caused Netflix’s stock to rise nearly 14%.
On the other hand, Netflix’s commitment to the deal faltered after Paramount came in with a higher offer and appeared willing to engage in several more rounds of a bidding war.
By the time Sarandos met with Trump administration officials on Thursday, he may have already decided to relent. Because President Donald Trump had previously warned him not to overpay, Sarandos reportedly told him, “I took your advice.”
Meanwhile, Warner Bros. employees are making worried now major layoffs in studios And conservative political pressure on CNN.
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