In a move that could reshape the global entertainment landscape, Netflix co-Chief Executive Ted Sarandos is spearheading a massive $72 billion bid to acquire much of Warner Bros. Discovery. This potential deal, however, has ignited a fierce takeover battle with rival media giant Paramount, which launched a hostile bid for the entire company.
From Video Clerk to Hollywood Power Broker
Ted Sarandos, 61, has come a long way from his days as a video store clerk in Tempe, Arizona. A self-professed movie buff, his "lightning-strike moment" came from that job, which fed his obsession with films. Recruited by Netflix co-founder Reed Hastings in 2000, Sarandos was the architect behind the streamer's radical content strategy.
He championed Netflix's move into original programming, leading to groundbreaking deals like the $100 million, two-season commitment for "House of Cards" in 2013. This was followed by era-defining hits like "Stranger Things," "Orange is the New Black," and "Bridgerton." Sarandos fundamentally changed viewing habits by popularising binge-watching—releasing full seasons at once—and shook up the movie business by challenging traditional theatrical windows.
The Crown Jewel: A Studio Lot and a Legacy
For Sarandos, a student of Hollywood history, the sprawling Warner Bros. studio lot in Burbank, California, represents the ultimate prize. People close to him say he has long sought an iconic studio property. To mark the deal announcement, he recently toured the legendary lot.
In a memo to Netflix staff and a speech in Paris, Sarandos directly addressed the industry's anxiety. "Some feel this is the end of Hollywood. What’s our response to that?" he and co-CEO Greg Peters wrote. "We see this as a win for the entertainment industry, not the end of it." He has publicly and privately promised that Warner Bros. would continue releasing movies in theatres under Netflix ownership.
His approach has won admirers. "He could care less about sentimental norms and traditional models," said Mark Shapiro, president of WME Group. "He is completely comfortable with change and evolution." Producer Greg Berlanti, creator of the Netflix hit "You," praised Sarandos's "old studio showman flair."
Regulatory Hurdles and Political Persuasion
The path to acquisition is fraught with challenges. Whichever company wins Warner will face a lengthy regulatory review in the U.S. and abroad. Sarandos has been actively lobbying, including a visit to the White House last month to meet President Donald Trump and discuss the purchase. He also met with Trump's Hollywood ambassador, actor Jon Voight, to discuss federal production tax incentives.
While Trump praised Sarandos as having done a "legendary job," he expressed concern about the combined power of Netflix and HBO Max. Sarandos countered that the streaming landscape should include platforms like TikTok and YouTube.
The deal also comes after internal controversies, such as the 2021 backlash over Dave Chappelle's special "The Closer." Sarandos's initial defence inflamed the situation, though he later apologised, calling his handling a "screw-up." The incident, however, signalled to talent that Netflix would stand by creative voices.
As the battle with Paramount intensifies—Warner Discovery's board formally rejected Paramount's approach this past week—Sarandos's bid is a bold attempt to seize control of Hollywood's destiny. For the former video clerk, it's the ultimate move to ensure Netflix's position as the world's leading entertainment company.
