Los Angeles: Netflix co-CEO Ted Sarandos has dismissed speculation linking the streaming giant to potential mergers or acquisitions, after Warner Bros. Discovery (WBD) announced that it is exploring breakup options, including a possible sale of the entire company.

Sarandos made the remarks during Netflix’s third-quarter earnings call on Tuesday, just hours after WBD said it had launched a “review of strategic alternatives” following unsolicited interest from multiple parties. The development reignited speculation about another round of Hollywood media consolidation, with companies like Paramount Skydance, Comcast, and Netflix being discussed as potential players.

“We’ve been very clear in the past that we have no interest in owning legacy media networks,” Sarandos said. “There’s no change there.”

Netflix shares fall despite optimistic outlook

Following the earnings announcement, Netflix’s stock dropped around 6% in after-hours trading, as the company missed Wall Street estimates on both revenue and profit. Despite the miss, the company reaffirmed its full-year revenue guidance, projecting total income in the range of $44.8 billion to $45.2 billion and expecting a stronger performance in the final quarter.

At market close, Netflix’s shares stood at $1,241.35, before sliding to $1,154.78 in pre-market trading — a 6.97% dip.

Focus on organic growth, not mergers

Sarandos emphasised that Netflix remains focused on organic expansion rather than dealmaking, even as its competitors explore mergers and acquisitions.

“It’s true that historically, we have been more builders than buyers,” Sarandos said. “We think we have plenty of runway for growth without fundamentally changing that playbook.”

He added that the company evaluates every potential partnership or acquisition opportunity carefully, applying “a strict lens” to determine whether it aligns with Netflix’s long-term strategy or offers better value than developing similar capabilities in-house.

“Nothing is a must-have for us to meet the goals we have for the business,” he said. “We can be and we will be choosy.”

Netflix confident despite industry consolidation

Netflix co-CEO Greg Peters echoed Sarandos’s stance, noting that previous industry consolidations — such as Disney’s acquisition of Fox, Amazon’s purchase of MGM, and the Discovery–Warner Bros. merger — did not significantly alter the competitive landscape.

“None of those mergers were a fundamental shift in the competitive landscape,” Peters said. “Watching some of our competitors potentially grow bigger via M&A does not change our view of the challenges they face.”

Both executives suggested that Netflix’s continued investment in content quality, international markets, and advertising-supported tiers will sustain its growth without the need for mergers.

Industry observers divided

Analysts believe Sarandos’s comments signal Netflix’s intent to differentiate itself as a self-reliant, content-driven platform while competitors scramble to restructure amid shifting audience habits and rising production costs.

However, some industry experts argue that as Hollywood faces mounting financial pressure, even major players like Netflix may have to reconsider strategic partnerships in the future.

“In the near term, Netflix is confident it can grow independently, but consolidation could become unavoidable as the cost of content and competition increases,” said a Los Angeles-based media analyst.

Conclusion

Netflix’s firm rejection of merger speculation underscores its strategy of building from within — focusing on sustainable growth, original content, and global reach. While Hollywood braces for another wave of consolidation, Netflix appears determined to stand apart, betting on innovation rather than acquisition.