Netflix abandons Warner Bros. acquisition, still pockets US$2.8 billion

Jakarta — The streaming services company Netflix has decided not to proceed with its plan to acquire Warner Bros. Discovery’s studio and streaming business after bid prices rose in the bidding war with Paramount Skydance. According to Variety, on Wednesday (4 March) local time, Netflix Chief Financial Officer Spence Neumann said the decision was purely based on price considerations. ‘The short answer is, it’s all about price,’ Neumann said during a technology, media and telecommunications conference hosted by Morgan Stanley. He explained that the opportunity to acquire Warner Bros. had always been viewed as an additional opportunity for Netflix. The deal would have been attractive if the price was right, but it was not an urgent requirement for the company. Previously, Netflix had reached an agreement to buy the Warner Bros. studio and streaming business in December. However, the plan changed after Paramount Skydance raised its offer to acquire the entire Warner Bros. Discovery. Although it failed to secure the Warner Bros. asset, Netflix still received a breakup fee of US$2.8 billion from Paramount Skydance. ‘Now we move forward with US$2.8 billion in the pocket that we did not have a few weeks ago,’ Neumann said. He emphasised that the experience of the bidding process would not alter Netflix’s acquisition strategy. The company will continue to seek opportunities that can accelerate the growth of its business. Separately, Netflix continues to increase investment in content production. The company is targeting content expenditure of around US$20 billion in 2026, up by about 10 per cent from the previous year. Netflix is forecasting company revenue in 2026 to be in the region of US$50.7 billion to US$51.7 billion. Its global subscriber base continues to grow, reaching more than 325 million subscribers by the end of 2025. According to Neumann, the company’s primary focus remains unchanged. Netflix aims to be the leading platform for creators worldwide to distribute professional content to global audiences.