Bloomberg Tech Podcast – Bonus Episode

Netflix co-CEO Ted Sarandos Says Warner Deal to Put More Films in Cinemas
Date: February 19, 2026
Host: Bloomberg (unnamed, with Lucas Shaw co-moderating)
Guest: Ted Sarandos, Co-CEO of Netflix

Episode Overview

In this special episode, Bloomberg hosts interview Netflix co-CEO Ted Sarandos about Netflix’s recently won bid to acquire Warner Bros. Discovery’s studio and streaming business. The conversation dives deep into the deal’s rationale, reactions from shareholders and Hollywood, regulatory considerations, theatrical release strategy, and Sarandos’s outlook for both Netflix and the wider industry. Sarandos also addresses concerns about jobs, creative output, and Netflix’s approach to competition.

Key Discussion Points and Insights

1. Netflix’s Warner Bros. Discovery Bid: Rationale and Positioning

• Deal Process and Bid Clarity:

  • Netflix feels confident in its position having won a clearly-defined bidding process for assets that Warner Bros. Discovery decided to sell.
  • Netflix has given Warner Bros. Discovery a seven-day window for clarity on any competing bid from Paramount (02:31, 06:35).
  • Sarandos emphasizes the need for Warner Bros. Discovery shareholders to have certainty about this process.

  “I believe it’s important to have that clarity. I think it’s important that the Warner Bros. Discovery shareholders deserve to have that certainty and clarity about this deal.” – Ted Sarandos (02:31)

• Long-Term vs. Short-Term Perspective:

  • Netflix is committed to a long-term vision, citing consistent discipline in acquisitions.
  • While acknowledging stock declines since the deal was announced, Sarandos attributes this to uncertainty and headwinds in the broader sector rather than flaws in the deal.

  “We run this company from the beginning for the long term…what we’re doing buying these assets is...We have a consumer model that can better maximize the returns on that IP.” – Ted Sarandos (03:50)

2. Shareholder and Market Reactions

• Stock Reaction and Perceptions:

  • Netflix stock dropped over 30% on deal news. Sarandos contextualizes this as the product of market uncertainty and sector-wide trends, not a lack of confidence in the acquisition.

  “There’s been some headwind in the stock. There’s been some headwind in the sector...They don’t like uncertainty...We have always been an incredibly disciplined buyer and we will continue to be one here.” – Ted Sarandos (04:03)

• Addressing Concerns About Growth and Strategy:

  • Some investors view the move as defensive given stagnant engagement growth. Sarandos pushes back, citing a robust financial year (2025: revenue growth of 16%, operating income up 30%) and rising engagement metrics.

  “If you look at the year we just came out of in 2025, grew revenue 16%, we grew operating income by 30%...our engagement did go up, went up a couple of billion hours.” – Ted Sarandos (05:18)

• Defending Against Calls to Walk Away:

  • On regulatory risk and integration: Netflix is experienced at business pivots and integrating new lines (advertising, live sports). He claims the path with the DOJ and global regulators is “normal” and manageable.

  “There’s nothing uniquely challenged about that process. We are about in the middle of it with the DOJ, with the European regulators...” – Ted Sarandos (06:35)

3. Competing Bids: Netflix vs. Paramount

• Why Netflix’s Deal is Superior:

  • The Netflix bid is for the assets on offer, not a complicated whole-company purchase. Sarandos claims buying the entire Warner Bros. Discovery (as Paramount proposes) brings regulatory and operational hurdles, especially in Europe (sports networks, complex broadcasting regulations).
  • The Netflix deal offers $27.75 per share plus Discovery Global assets, matching Warner Bros. Discovery’s own sale structure.

  “Our deal is quite simple: $27.75 per share, the value of Discovery Global, which I think is an incredible asset. And they do too. That’s why they set the offer up this way.” – Ted Sarandos (08:54)

• Option of Buying the Whole Company?

  • Netflix isn’t interested in the linear broadcast business, especially outside the U.S.

  “The linear broadcast business is not something that we’re interested in but others are.” – Ted Sarandos (09:49)

4. Political and Regulatory Dynamics

• Interactions with the Administration:

  • Sarandos confirms contact with the president regarding industry health and American jobs, but dismisses any suggestion of special regulatory access for rivals (i.e., Paramount/Ellison family).

  “This is a business deal, not a political deal.” – Ted Sarandos (10:39)

• Regulatory Inquiry Into Theatrical Impact:

  • DOJ is examining what either outcome would mean for cinemas. Sarandos frames this as standard guideline-driven diligence (2023 DOJ merger guidelines).

5. Theatrical Release Commitments and Antitrust Questions

• Netflix’s Theatrical Strategy Post-Deal:

  • Warner Bros. will “run pretty much like they are today,” with traditional 45-day theatrical windows for films.
  • Netflix aims to increase the number of high-quality films in theaters, channeling select Netflix productions through Warner's distribution system.

  “We’re going to keep Warner Bros. running pretty much like they are today, releasing their movies in theaters for the traditional 45-day windows...It’s very likely that you’ll have even more outcome of high-quality films for the theaters if this deal goes through.” – Ted Sarandos (12:19)

  • Sarandos references successful partnership events like the Stranger Things finale and K-pop activations as examples of creative collaboration with theaters.

  “We did the Stranger Things finale, which had thousands and thousands of sold out shows all over the country, or the K-pop Demon Hunter sing-along, which energized the theaters on an otherwise very slow week.” – Ted Sarandos (13:21)

• Will Netflix Commit in Writing to Theater Output or Production Levels?

  • Sarandos resists formal written commitments, arguing Netflix’s combined market share remains relatively modest, and that imposed remedies aren’t warranted.

  “We don’t. This deal does not represent any concentration risk at all...9% of the business, we’re going to add HBO to that, we’re going to have 10% of the TV business...” – Ted Sarandos (14:35)

6. Industry Jobs, Union Interests, and Competitive Pressure

• Trade Unions and Jobs:

  • Sarandos urges unions to support the Netflix-Warner deal, warning that a Paramount acquisition could mean drastic additional cost-cutting and job losses.

  “The trade unions...should come out and support this deal explicitly on behalf of their membership to protect employment and jobs.” – Ted Sarandos (15:39)

7. HBO and Future Consumer Value

• HBO Standalone Access and Pricing:

  • Netflix will continue to offer HBO as a standalone, with plans for bundle discounts. 80%-85% of HBO Max U.S. subscribers already have Netflix subscriptions.

  “We will continue to offer it as a standalone unit...We’ll be able to put those businesses together and give those consumers a pretty steep discount. So that we’re excited to do.” – Ted Sarandos (17:09)

Memorable Quotes & Notable Moments

• “People don’t like change, they don’t like any degree of uncertainty. Sometimes...any time there’s a new deal, there is regulatory scrutiny, there is execution risk...but we are highly confident that we’re going to bring this deal close.” – Ted Sarandos (06:35)

• “This is a business deal, not a political deal.” – Ted Sarandos (10:39)

• “What they [theaters] really need is more good movies and we’re going to provide them for them.” – Ted Sarandos (14:07)

Important Timestamps

• 02:31 – Sarandos explains Netflix’s strategy and the bid's clarity window
• 03:50 – On running Netflix for the long term and leveraging Warner Bros. IP
• 05:18 – Addressing concerns about Netflix's growth rate and engagement
• 06:35 – Responding to calls for Netflix to walk away; regulatory confidence
• 08:54 – Why Netflix’s proposed asset deal is simpler and preferable
• 10:39 – On political lobbying, regulators, and process transparency
• 12:19 – Detailed answer on theatrical strategy post-acquisition
• 14:35 – On (not) making written commitments for theater output
• 15:39 – Urging Hollywood trade unions to support the deal on jobs grounds
• 17:09 – Plans for HBO access and pricing for consumers

Tone and Language

Ted Sarandos maintains a pragmatic but optimistic tone, repeatedly emphasizing Netflix’s discipline, long-term approach, and respect for existing Hollywood practices. His arguments are direct, blending confidence in Netflix’s operational capabilities with pointed criticisms of rival bids and a candid appeal to both shareholders and industry workers.

In Summary

This episode offers a comprehensive look at Netflix’s ambitions to reshape the entertainment landscape with the Warner Bros. Discovery deal—including more movies in cinemas, new opportunities for creative talent, and assurances to both Wall Street and Main Street that the combined company will be both a competitive force and a responsible steward of beloved cultural brands. Sarandos’s answers suggest Netflix isn’t backing down from disruption, but is prepared to play by Hollywood’s rules where it matters.