On Thursday, Netflix Inc. (NASDAQ:NFLX) co-CEO Ted Sarandos reaffirmed the streaming giant’s long-standing preference for building and partnering over large-scale acquisitions as speculation continues over potential deals involving Lionsgate Studios Corp. (NYSE:LION), NBCUniversal and other media companies.
Ted Sarandos Addresses Acquisition Rumors
During the company’s second-quarter earnings call, Netflix executives pushed back against ongoing speculation that it could pursue major acquisitions, with Sarandos reiterating that the company remains focused on organic growth rather than blockbuster takeovers.
Responding to an analyst’s question about whether Netflix could acquire companies such as Lionsgate or NBCUniversal amid broader industry consolidation, Sarandos said the company has “multiple ways to achieve our goals,” including “producing, licensing, partnering,” while continually evaluating the most attractive opportunities.
He stressed that Netflix’s strategy has not changed despite recent M&A speculation.
“As we’ve said, we are primarily builders, not buyers, and that remains the case today,” Sarandos said, echoing his statement from October 2025. “Our track record is clear that we have a very high bar to do any big M&A.”
The comments follow months of investor speculation after reports linked Netflix to a potential bid for Warner Bros. Discovery, Inc. (NASDAQ:WBD), a deal that ultimately did not materialize.
Netflix shares closed up 0.91% at $74.35 on Thursday and fell 9.05% to $67.62 in after-hours trading, according to Benzinga Pro.
Netflix Q2 Revenue Misses, EPS Beats Estimates
Netflix reported second-quarter revenue of $12.56 billion, up 13% year over year, narrowly missing Wall Street estimates of $12.59 billion.
The streaming giant said its revenue performance remained strong and that it continues to be on track to achieve its full-year objectives.
Quarterly earnings came in at 80 cents per share, topping analysts’ consensus estimate of 79 cents per share.
For the third quarter, Netflix forecast revenue of $12.86 billion, representing 12% year-over-year growth, driven by continued gains in memberships, pricing and advertising revenue.
Benzinga’s Edge Stock Rankings show that NFLX maintains a negative price trend across short, medium and long-term time frames. The stock ranks in the 91st percentile for quality metrics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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