Netflix co-CEOs Ted Sarandos and Greg Peters walked away from a potential $4.2 billion deal to acquire Warner Bros., citing that they had done due diligence and didn’t feel like prolonging the process if the number was above their threshold. The decision, made after Paramount’s superior offer, was announced in a brief town hall address. Sarandos expressed disappointment but said the company will move forward with its strong year ahead.
The news has left employees stunned and divided, with some feeling that losing Warner Bros. would have provided endless IP for reboots, sequels, and remakes. Others are focused on Netflix’s upcoming milestones, including a significant year in 2030. With Paramount’s hostile takeover efforts underway, Sarandos had been vocal about his support for the deal before news of the WBD board’s recommendation broke.
Source: https://deadline.com/2026/02/netflix-town-hall-after-warner-bros-paramount-ted-sarandos-1236739331