Netflix shocked the entertainment world this week when it Warner Bros. declined to raise its bid for DiscoverySetting the stage for Paramount Skydance to win ownership of the Hollywood studios.
At the time, Netflix co-CEOs Ted Sarandos and Greg Peters said they were being disciplined financially. Now reporting at bloomberg Provides more details about why Netflix executives backed out A bidding war that everyone seemed to be winning back in December.
For one thing, the streaming giant’s shareholders weren’t convinced that buying the Hollywood studio was the right move — Netflix’s share price dropped 30% since the acquisition was announced, while it was retreating after the latter was announced. Netflix stock rose nearly 14%.
For another, Netflix’s commitment to the deal reportedly wavered after Paramount came in with an increased offer and seemed willing to go into several more rounds of a bidding war.
By the time Sarandos met with Trump administration officials on Thursday, he had already decided to consent. In fact, since Trump had already warned him not to overpay, Sarandos reportedly told the President, “I took your advice.”
Meanwhile, Warner Bros. employees are now worried major studio layoffs And Conservative political pressure on CNN.
