Ted Sarandos Reveals Why Netflix Let Paramount Chase WBD Alone
Netflix blinked first. After a high-stakes chase for Warner Bros. Discovery, the streamer bowed out rather than top Paramount’s final offer—handing its rival the win—and CEO Ted Sarandos now explains why.
Paramount just outmaneuvered Netflix in the chase for Warner Bros. Discovery, and Netflix walked away instead of sweetening its offer. Now Ted Sarandos is explaining why the streamer tapped out.
Netflix saw the writing on the wall
In a recent interview, Sarandos said Netflix had already mapped out how this could go: Paramount comes in with a richer proposal, Warner Bros. is into it, and Netflix exits without a counter. When the notice hit on Thursday that a superior offer was in play, he says the plan kicked in fast.
"We knew exactly what we were gonna do."
Translation: there was a cap on what Netflix would pay, and they were prepared to stick to it.
The money and the mechanics
Sarandos says Netflix had a tight price band and stuck to it. The only real tweak they made along the way was converting their structure from a cash-and-stock mix to an all-cash offer to speed things up. He sounds perfectly comfortable with how that played.
"I'm happy where we got in and happy where we got out."
- Netflix pre-modeled multiple outcomes and didn't need to run back to the board when the heat turned up.
- There were open questions about the other bidder's financing and how far they'd push on price — until they went big.
- The pivot point: a personal guarantee attached to a $111 billion deal, which Sarandos called unusual, followed by a higher price and other sticking points resolved.
- Warner Bros. favored Paramount's latest bid; Netflix chose not to chase.
Final vs. not-final
One detail that says a lot about the two approaches: Paramount signaled its proposal was not labeled as last-and-final, while Netflix put a line in the sand.
According to Sarandos, Netflix declared its offer on December 5, 2025 as final.
"We presented it as last and final. It was."
So what now?
Don't expect Netflix to pivot into hunting another studio. Sarandos framed the company as builders, not buyers, and pointed to $2.8 billion they plan to plow back into the core business. Paramount may have won this round, but Netflix is signaling it would rather spend that war chest on what it already does best.