Netflix co-CEO Ted Sarandos has dismissed rumors that President Trump influenced the collapse of the company's bid to acquire Warner Bros. In his first interview since the deal fell through, Sarandos attributed the outcome to being outbid by a rival offer from Paramount, describing it as an irrational move.
Netflix co-CEO Ted Sarandos addressed speculation surrounding the failed $82.7 billion acquisition of Warner Bros. in an interview with Bloomberg's Lucas Shaw, published on Saturday. The deal, initially agreed upon in December, unraveled in February when Netflix withdrew after Paramount launched several hostile takeover bids, ultimately outbidding them with an offer led by David Ellison.
Sarandos emphasized that the decision stemmed from Netflix's predetermined price limits, not external pressures. "We had a very tight range that we’d be willing to pay and made that offer back when we closed this deal," he said. "I’m happy where we got in and happy where we got out."
Rumors had suggested involvement from the Department of Justice or direct sway from President Trump, but Sarandos refuted these claims. "I don’t know that there was growing political resistance," he stated. "It was a growing narrative of political resistance. But we were on a normal regulatory path… We were not only involved with the DOJ, we were involved with 50 regulatory bodies around the world. These things have been going exactly the way they should."
He added that Trump "stayed completely neutral on this." Regarding the competitive bidding, Sarandos noted, "The truth of it is, someone was going to lose it for a dollar. And the quicker you accepted that, the better."
Describing Paramount's bid as "unusual" and "irrational," Sarandos expressed confidence in Netflix's position. "I’m confident in our future that we’re not impacted by all that. In fact, maybe it’s to our advantage," he said, while hoping for stability in the industry.
In a joint statement at the time of withdrawal, Sarandos and co-CEO Greg Peters clarified, "…this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price."
