Why did Netflix back away from its deal to acquire Warner Bros?

Netflix stunned the entertainment world this week when it debuted declined to raise its bid for Warner Bros. DiscoveryThis paved the way for Paramount Skydance to win ownership of the Hollywood studio.

At the time, Netflix co-CEOs Ted Sarandos and Greg Peters said they were undergoing financial discipline. now Reports in Bloomberg Provides more details on why Netflix executives are holding back A bidding war that appeared to be won back in December.

For one thing, shareholders in the streaming giant seemed unconvinced that buying a Hollywood studio was the right move — Netflix’s stock price has fallen 30% since the acquisition was announced, while the subsequent announcement that it was down It sent Netflix stock soaring nearly 14%.

On the other hand, Netflix’s commitment to the deal reportedly declined after Paramount made an increased bid and appeared ready to go several more rounds in the bidding war.

By the time Sarandos met with Trump administration officials on Thursday, he may have already decided to concede. In fact, since Trump had previously warned him against overpaying, Sarandos reportedly told the president: “I took your advice.”

Meanwhile, employees at Warner Bros. Worried now Layoffs at main studio and Conservative political pressure on CNN.