Netflix's Ted Sarandos Says 'No Interest In Owning Legacy Media Networks'

On plans on bidding for Warner Bros. Discovery., Ted Sarandos, Netflix co-CEO, said "nothing is a must" for them, signaling little interest in owning on legacy media networks.

“Nothing is a must for us to meet our goals that we have for this business,” he said during an after-market analyst call after Netflix unveiled its third-quarter financial results, without mentioning WBD directly.

The top Netflix executive's remark comes after the rival major studio’s board of directors said they had received “unsolicited interest” from “multiple parties”.

Meanwhile, Sarandos said that Netflix prefers the route of organic growth rather than acquiring big businesses.

“When it comes to M&A opportunities, we look at them, and we look at all of them, and we apply the same framework and lens that we look at when we look to invest. Is it a big opportunity? Is there additional value in ownership?” he told analysts.

“We’re predominantly focused on growing organically, investing aggressively and responsibly into the growth and returning access cash flow to shareholders,” he said.

Peters also downplayed any strategy to grow through major acquisitions after earlier industry consolidation.

“None of those mergers were a fundamental shift in the competitive landscape, and we have also seen a wide range of outcomes from such mergers. So watching some of our competitors potentially get bigger via M&A does not change in and of itself, at least our view of the competitive landscape,” he added.

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Warner Bros Discovery, the US media house, which owns big labels such as HBO, CNN among other networks, said it is considering a sale, after "multiple parties" had made unsolicited offers to buy the company.

After this came to light, several top companies were mentioned as part of a bidding war to acquire Warner Bros Discovery such as David Ellison’s Paramount Skydance, Comcast and Netflix.

Chief executive at Warner Bros Discovery, David Zaslav, said the board would review its options in light of the bids, as it looks to identify the "best path ... to unlock the full value of our assets".

The company's shares jumped roughly 11% after the sale announcement.

The media house has also launched “a review of strategic alternatives to maximize shareholder value.

Those strategic options are thought to include continuing with the previously announced plan to split into two companies, Warner Bros. and Discovery Global, a “transaction for the entire company” or “separate transactions for its Warner Bros. and/or Discovery Global businesses,” WBD said earlier Tuesday.

Reportedly, Warners had rejected an initial bid from Paramount Skydance, opening the way for rival bids from Netflix and Comcast. CNBC added Netflix had no interest in WBD’s legacy media assets, while also potentially looking to keep the Warner Bros. studio and streaming businesses away from a Hollywood rival.

On the other hand, Sarandos said, “We’ve been very clear in the past that we have no interest in owning legacy media networks, so there is no change there. But in general, we believe that we can be and we will be choosy."