Will Netflix embark on a significant media acquisition? It’s unlikely.
During the Bloomberg Screentime conference in Los Angeles on Wednesday, Greg Peters, co-CEO of Netflix, spoke about the company’s approach towards growth. When moderator Lucas Shaw, managing editor for Bloomberg’s media and entertainment, inquired if there was any merit to the speculation regarding Netflix’s interest in acquiring Warner Bros. Discovery, Peters offered a measured response.
“I would characterize it this way: We have a strong history of prioritizing building over buying,” Peters stated. He added, “One should maintain a healthy skepticism regarding large media mergers, as they haven’t consistently shown positive outcomes over time.”
“Our task is to determine the most effective strategy for expanding our business,” Peters elaborated. If a major acquisition is identified as “the optimal route for growth, fantastic. If not, we will explore alternative avenues.”
Talks of Netflix’s potential interest in WBD gained traction after reports surfaced that David Ellison, shortly after finalizing an $8 billion deal to establish Paramount Skydance, is considering a comprehensive acquisition of Warner Bros. Discovery.
When discussing the competitive landscape that now includes “the second-wealthiest person globally” — in reference to Larry Ellison, who significantly financed the Skydance acquisition — Peters remarked, “It’s invigorating to have new competition in the ecosystem. It energizes the market and keeps everyone alert.” However, he emphasized that it does not “alter the fundamental business dynamics.”
In response to queries about whether the Paramount Skydance team acted “irrationally” in its $7.7 billion deal for UFC rights over seven years, Peters pointed out that Netflix continually competes for content rights. “If we lose a bid, my sentiment is, ‘Good luck and maximize that opportunity.’”
Regarding YouTube, Peters acknowledged, “Absolutely, they are a competitor.” However, he noted that YouTube is characterized as an “orthogonal” competitor, given their fundamentally different business models. “Orthogonal competition is the most challenging,” he affirmed. Peters expressed that Netflix aims to collaborate with creators from various platforms, including YouTube and TikTok, to attract the largest global audience possible.
Recently, billionaire Elon Musk initiated a campaign to “cancel Netflix” on his X platform, encouraging users to abandon the streaming service due to its perceived “woke” content, which includes children’s programming featuring transgender characters.
Although Peters did not directly respond to Musk’s initiative, he remarked on the existence of programs that “some viewers may not appreciate,” attributing this to Netflix’s endeavor to cater to a global audience nearing 1 billion. “If we are doing our job correctly, there will be certain offerings on the platform that some might find unappealing or potentially detrimental. That’s part of our business model,” stated Peters.
For the first half of the year, Netflix exceeded Wall Street projections regarding revenue and earnings. As of the first quarter of 2025, the company has ceased providing regular subscriber counts, focusing instead on financial health and user engagement. In the Q2 earnings report, Netflix raised its revenue forecast for the full year 2025, expecting between $44.8 billion and $45.2 billion (up from an earlier estimate of $43.5 billion to $44.5 billion), indicating 15%-16% growth year-over-year, largely due to the recent depreciation of the U.S. dollar.
Peters was appointed co-CEO of Netflix in January 2023, sharing the role with Ted Sarandos, following Reed Hastings’ resignation. Previously, Peters held positions as chief product officer and chief operating officer.
