Ted Sarandos, co-CEO of Netflix, talks about how the company is making a big push in Europe after backing out of the Warner Bros. Discovery (WBD) acquisition battle.
Netflix did not raise its $82.7 billion offer for WBD’s studios and streaming assets after the board decided that Paramount Skydance’s offer was better. Sarandos mentioned advanced scenario planning and said that the deal became financially impossible because of bidding pressures. This made it easier for Paramount to take over and avoid cuts that would have cost $16 billion in debt.
Sarandos stressed Netflix’s strong ties to Europe, saying that the company has spent more than $13 billion on local content in the past ten years, making it one of the best places to find European stories. The company has created 100,000 jobs through more than 600 independent producers. It focuses on growth through incentives instead of strict rules. He wants the EU to have simple, clear rules to protect the benefits of the single market.
After the bid, Netflix moved money to spending on original content, buying back stock, and partnerships with theaters. Since late February, shares have gone up 30%. Sarandos is getting ready to talk to EU officials about audiovisual investments while the rules are being looked at. In the changing streaming landscape, this asset-light approach puts margins ahead of huge mergers.
