2/28/2026 | USA | technology | ✓ Verified - techcrunch.com

Why did Netflix back down from its deal to acquire Warner Bros.?

#Netflix #Warner Bros. Discovery #Ted Sarandos #Paramount Skydance #acquisition #stock price #bidding war #Trump

📌 Key Takeaways

Netflix declined to raise bid for Warner Bros. Discovery
Shareholder concerns caused Netflix stock to drop 30% after acquisition announcement
Paramount's increased offer and willingness to continue bidding war influenced Netflix's decision
Sarandos told Trump officials he took the president's advice against overpaying

📖 Full Retelling

Netflix co-CEOs Ted Sarandos and Greg Peters stunned the entertainment industry in Washington on February 28, 2026, when they declined to raise their bid for Warner Bros. Discovery, ultimately allowing Paramount Skydance to win ownership of the Hollywood studio, citing financial discipline as the official reason. The decision came after months of intense bidding that Netflix initially appeared to win back in December, with Bloomberg reporting revealing the complex factors behind this strategic retreat. Shareholder concerns proved significant, as Netflix's stock price had plummeted 30% since announcing the acquisition plans, while the subsequent announcement of backing down sent Netflix shares soaring nearly 14%, indicating investor approval of the more conservative approach. Additionally, Netflix's commitment reportedly wavered after Paramount increased its offer and demonstrated willingness to continue a bidding war, with Sarandos reportedly telling Trump administration officials during a Thursday meeting, 'I took your advice,' referencing Trump's previous warnings against overpaying for the acquisition.

🏷️ Themes

Corporate Strategy, Media Mergers, Financial Markets

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Entity Intersection Graph

Connections for Ted Sarandos:

🌐 Netflix 14 shared

👤 Donald Trump 4 shared

🌐 Paramount 4 shared

👤 Susan Rice 3 shared

🏢 Warner Bros. Discovery 3 shared

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