5 Words From Netflix's Co-CEO Ted Sarandos That Suggest an Acquisition May Not Necessarily Be on the Horizon for the Streaming Giant

2 months ago 37

David Jagielski, CPA, The Motley Fool

Tue, July 21, 2026 astatine 7:50 AM CDT 3 min read

Netflix (NASDAQ: NFLX) investors were disappointed with the company's astir caller net results. Although the streaming elephantine continues to turn astatine a decent pace, it intelligibly isn't capable to triumph implicit maturation investors, particularly with it projecting its maturation complaint to diminution to 12% for the existent 4th (down from 13%).

One accidental for Netflix to reignite its maturation could beryllium via an acquisition. The streaming institution failed to get assets from Warner Bros. Discovery earlier this year, but Netflix's sanction continues to popular up successful rumors. Investors whitethorn beryllium eagerly anticipating quality of a deal, successful the hopes that it tin pave the adjacent question of maturation for the business. But co-CEO Ted Sarandos appeared to person poured acold h2o connected that, stating connected the company's net telephone that "we're chiefly builders, not buyers."

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Why Netflix mightiness not spell the M&A way

Sarandos made it wide connected the company's caller league telephone that portion Netflix whitethorn not needfully beryllium averse to pursuing mergers & acquisitions (M&A), it would person to marque a batch of consciousness for the concern to see one: "Our way grounds is wide that we person a precise precocious barroom to bash immoderate large M&A." CFO Spence Neumann besides said, "we put successful the concern some organically and opportunistically done M&A."

The cardinal connection determination is opportunistically. When it pursued Warner Bros., Netflix had a large accidental to get apical assets and content, including HBO. And it pursued the woody aggressively until it nary longer made consciousness to bash so, arsenic the valuation climbed amid a bidding warfare with Paramount Skydance.

While an acquisition could surely assistance Netflix's concern grow, management's absorption connected gathering alternatively than simply buying reflects what the institution has done implicit the years. It has reinvested successful its ain growth, gathering its contented and varied offerings alternatively than relying connected acquisitions. It has yielded beardown results arsenic the concern has grown tremendously implicit the years, and whitethorn proceed to bash truthful for the foreseeable future.

Is Netflix banal a buy?

This year, Netflix's banal has declined by astir 30%, arsenic investors person appeared to person mislaid assurance successful the company's way forward. While the marketplace initially breathed a suspiration of alleviation erstwhile Netflix walked distant from the Warner Bros. woody earlier this year, the rally was short-lived, arsenic concerns astir what the institution would bash with co-founder Reed Hastings leaving the institution began to measurement connected the stock.

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