Netflix Walked Away From WBD — After Doing the Math
Ted Sarandos reveals Netflix ran deep scenario planning before pulling out of the Warner Bros. Discovery bidding war.
Netflix didn't just casually bow out of the Warner Bros. Discovery sweepstakes. It did its homework first.
In a new interview, Netflix co-CEO Ted Sarandos detailed the extensive scenario planning the streaming giant conducted before dropping its bid for WBD on Feb. 26. The exit shocked Hollywood insiders who expected Netflix to stay in the fight.
Sarandos also weighed in on the Paramount angle. If Paramount's competing deal for WBD closes, he estimates it would trigger more than $16 billion in cuts. That's a staggering number that underscores just how bloated legacy media operations have become.
The takeaway? Netflix looked at the numbers, didn't like what it saw, and walked. Meanwhile, whoever does acquire WBD faces a brutal restructuring bill that could reshape the entire entertainment landscape.