

Netflix CFO Spence Neumann was at a conference today and gave the clearest explanation yet of why they let Paramount win.

"The short answer is, it was all about price. We said all along this opportunity was a nice-to-have at the right price, not a must-have at any price."

Paramount came in at $31 a share. Netflix looked at that number and said nah.

Now they have $2.8 billion in breakup fees from Paramount and Warner Bros. Money they did not have a few weeks ago.

What They Are Doing With It

Netflix is spending around $20 billion on content this year anyway. That is up 10 percent from last year. The breakup fee is just extra cash on top of their normal spending.

They have 325 million subscribers now. Revenue is projected at $50-51 billion for 2026. Operating margin at 31.5 percent.

The Spin

Neumann said they had "a stronger belief" that they would have been great stewards for Warner Bros. He also said they were confident about regulatory approval.

But at the end of the day, price is price.

The Real Story

Netflix spent months in a bidding war, got grilled by senators, dealt with Trump demanding they fire a board member, watched Ted Sarandos fly to Washington for meetings, and then walked away.

Now they have an extra $2.8 billion in the bank and their stock went up when they dropped out.

Sometimes the best deal is the one you do not make.

Netflix Lost The Warner Bros Deal And Walked Away With $2.8 Billion For Doing Nothing