Why Netflix Withdrew from Warner Bros. Discovery Acquisition Attempt

Jakarta (ANTARA) – Netflix shocked the entertainment world this week by deciding not to increase its offer in its acquisition attempt for Warner Bros. Discovery, thereby paving the way for Paramount Skydance to win ownership of the Hollywood studio.

According to TechCrunch reporting on Saturday, 28 February, Netflix CEO Ted Sarandos and Greg Peters said they acted with financial discipline.

Now, a Bloomberg report has revealed more details about the reasons Netflix executives withdrew from the bidding war that they appeared to have won in December.

Firstly, shareholders of the giant streaming service appeared highly sceptical that the acquisition was a good deal.

Netflix share prices fell 30 per cent since the announcement of the deal, and news that Netflix was withdrawing from the agreement actually drove its shares up nearly 14 per cent.

When Sarandos met with officials from President Donald Trump’s US administration on Thursday, 26 February, he may have already decided to back down.

Trump was previously reported to have warned Sarandos against paying too much, and Sarandos followed his advice.

Meanwhile, Warner Bros. employees are now concerned about the possibility of large-scale redundancies and conservative political pressure on CNN.