Netflix co-CEO Ted Sarandos's visit to the White House on Thursday was overshadowed by Paramount's winning bid for Warner Bros Discovery, a deal valued at $31 per share. Sarandos had been in Washington for scheduled meetings with White House staff and Department of Justice officials, but while he was there, Warner Bros Discovery's board declared Paramount's offer a 'company superior proposal,' effectively putting it ahead of Netflix's bid.
Netflix responded within 90 minutes, announcing it was withdrawing from the race. In a statement, Sarandos and co-CEO Greg Peters said, 'We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive.' Sources suggest Sarandos approved the retreat while still at the White House, though Netflix denied this, saying he had left the building before the announcement.
The timing was described as brutal by industry observers, with one Oscar-winning producer noting the embarrassment for Sarandos. Paramount, led by David Ellison, secured its second major studio acquisition in less than two years, despite earlier indications that Netflix had the upper hand. The deal is expected to face scrutiny from lawmakers, including Senator Elizabeth Warren, who called it an 'antitrust disaster.'
Sarandos did not meet with President Donald Trump during his visit, though they have a professional relationship. Tensions have been high after Trump called for Netflix to fire board member Susan Rice, following her comments about corporations 'taking a knee to Trump.' Sarandos had downplayed the demand, stating the acquisition was a business deal, not a political one.
