Sarandos Addresses 'Irrational' Winning Bid
In his first public comments since Netflix lost the bidding war for Warner Bros. Discovery, co-CEO Ted Sarandos did not hold back. Speaking to Bloomberg, Sarandos characterized the winning offer from Paramount as unusual and irrational. Despite losing the acquisition, he expressed optimism about Netflix's position, suggesting the outcome could ultimately serve as an advantage for the streaming giant.
Financial Discipline Over Bidding Wars
Sarandos explained that Netflix maintained a strict valuation range for the potential deal. When the competing bid emerged, the company decided quickly to withdraw rather than escalate the price. He emphasized that the decision to pivot to a cash offer was intended to expedite the process, but the company refused to overextend financially.
Dismissing Political Pressure
The interview also touched on external factors, including political pressure regarding the acquisition. Sarandos suggested that such pressure was a cost-saving tactic compared to raising a bid. Furthermore, he clarified that once it became clear the package included CNN—an asset Netflix had no interest in—the deal lost its appeal. Sarandos concluded by stating he is 'happy' with both the entry and exit from the negotiation table.
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