Ted Sarandos on Netflix Nixing Warner Bros. Bid, Trump’s Role, David Ellison, and How the Streamer Is Closer to Cinema Owners Than Ever

Netflix Co-CEO Ted Sarandos revealed in a Bloomberg interview on February 26, 2025, that Netflix pulled out of its $82.7 billion bid to acquire Warner Bros. studios minutes after leaving a White House meeting, as the company chose not to match David Ellison's sweetened $111 billion offer from Paramount-Skydance, which became the largest leveraged buyout in entertainment history. Sarandos described his departure from the White House as appearing "like the cat who ate the canary," reflecting Netflix's strategic decision to walk away rather than escalate the bidding war that would have required taking on more than $95 million in debt. The deal, which includes taking on substantial debt, could disrupt Hollywood to its core and potentially result in massive layoffs across the industry. Contrary to widespread speculation, President Trump did not play a decisive role in determining the outcome of the Warner Bros. acquisition, according to Sarandos. While many assumed Trump would influence regulators given his friendship with Larry Ellison (David's father and Oracle founder), Sarandos clarified that "it was never the case" that Trump would make the final call. The Netflix executive noted that Trump lost interest once it became clear the deal wouldn't involve CNN, which would have been spun off in other scenarios. Trump had previously pressured Netflix to fire board member Susan Rice over political comments, but Sarandos defended Rice's right to speak while emphasizing she wasn't representing Netflix's position. The failed acquisition attempt has unexpectedly strengthened Netflix's relationship with cinema owners, as Sarandos revealed unprecedented dialogue between the streaming giant and theater operators. As part of its bid, Netflix committed to a 45-day exclusive theatrical window for films, a significant shift for a platform historically known for bypassing traditional cinema releases. This new partnership has already borne fruit with coordinated releases like "Stranger Things" and "KPop Demon Hunters," with "One Piece" scheduled for simultaneous U.S. and Japan releases next week. Sarandos even suggested Netflix might consider purchasing theaters outright given its substantial cash reserves, signaling a potential transformation in how the streamer approaches content distribution. Meanwhile, Ellison's Paramount celebrated a major victory with "Scream 3" grossing over $100 million globally, demonstrating the success of the new leadership team.