Netflix boss drops 'ego' remarks as he gets candid about lost Warner Bros deal

A takeover by Netflix of Warner Bros. Discovery was on the cusp. Until rival Paramount Skydance swooped in to get the deal for a jaw-dropping $110 billion.

Now, the streaming giant's head, Ted Sarandos, is looking back at the unravelling of the likely agreement in his first 2026 quarter earnings interview.

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In what appears to be a quiet contrast to Paramount, who won the deal, Netflix's chief boss said, “The most important benefit of this entire exercise… was that we tested our investment discipline, and when the cost of this deal grew beyond the net value to our business and to our shareholders, we were willing to put emotion and ego aside and walk away."

Making it clear where the streaming platform drew the line - after what some reports say was a 'bidding war' between the two streaming giants - that they will not enter a hole where there is no way out.

“And doing it at this level, I think, sets up our teams to understand that that’s the expectation of them day to day.”

Despite opting for discipline over a thrill-inducing chase, the Netflix head admits a sense of disappointment was present after the deal broke down.

"We met a bunch of great people in WBD during this process. So if there’s any emotion in all of this, it was the disappointment of not getting to work with those folks. And we were really looking forward to that.”

It is worth noting that Paramount Skydance paid Netflix $2.8 billion in a breakup fee after Warner Bros. Discovery ended an agreement with them.