Netflix co-CEO on WBD buyout rumors: 'We have no interest in owning legacy media networks'

Core Viewpoint - Netflix co-CEO Ted Sarandos dismissed merger speculation amid Warner Bros. Discovery's exploration of breakup options, emphasizing the company's lack of interest in acquiring legacy media networks [1][2] Company Strategy - Netflix remains focused on organic growth rather than pursuing mergers and acquisitions, with Sarandos stating that the company has sufficient growth potential without altering its strategy [4] - The company evaluates potential deals strictly, considering whether they would enhance its entertainment portfolio or strategic goals, and if they provide better value than developing capabilities internally [4][5] Market Reaction - Following the earnings call, Netflix's shares fell approximately 6% in after-hours trading due to missing Wall Street estimates for both revenue and profit [3] - Despite the dip, Netflix reaffirmed its full-year revenue outlook, expecting results to fall within the range of $44.8 billion to $45.2 billion [3] Industry Context - The entertainment industry is experiencing waves of consolidation, with notable mergers such as Disney's acquisition of Fox and Amazon's purchase of MGM [5] - Netflix executives believe that these mergers do not fundamentally alter the competitive landscape, maintaining that the challenges faced by competitors remain unchanged [6]