Netflix Staying on the Sidelines As TNT Sports Parent Seeks Buyer

Don’t expect Netflix to be much of a player for TNT Sports parent Warner Bros. Discovery.

The company said late Tuesday that it has little, if any interest, in WBD, though it did not refer to that entity specifically by name.

“Nothing is a must for us to meet our goals that we have for this business,” said Netflix co-CEO Ted Sarandos, particularly citing a disinterest in legacy media networks. “In general, we believe we can be and we will be choosy.”

Adding to the point, Greg Peters, the other Netflix co-CEO, said many other media mega-mergers have done little to introduce a large-scale impact that it would seek in any such deal. 

“None of those mergers were a fundamental shift in the competitive landscape, and we have also seen a wide range of outcomes from such mergers,” Peters said. “So watching some of our competitors potentially get bigger via [mergers and acquisitions] does not change, in and of itself, our view of the competitive landscape.”

The comments arrived just hours after WBD said it was up for sale, formally initiating a strategic review process in the wake of multiple inbound and unsolicited offers. As one of the most powerful entities in all of media, Netflix has been reported as a potential suitor for some of the WBD assets.

Broader Results

Netflix, meanwhile, continued on its tear within its own operating results. The company said it generated $11.5 billion in revenue for the third quarter, up 17.2% from the comparable period last year, and $2.5 billion in net income, up 8%. An ongoing dispute with Brazilian tax authorities cut into the operating margin somewhat, but that is not expected to have a material effect in future quarters.

The company also touted other successes during the third quarter, such as the Nielsen streaming record of 2.9 billion viewing minutes generated for the opening weekend of Happy Gilmore 2 in July.

The results extended an accelerating run for Netflix that has transpired all year. Netflix is also approaching its Christmas 2025 NFL doubleheader that should represent another high point for the company. 

Netflix is additionally perhaps days away from the formal announcement of a rights deal with MLB that will include the Home Run Derby for the 2026–28 seasons. League commissioner Rob Manfred said last month at the Front Office Sports Tuned In summit that the deal, along with ones with ESPN and NBC, have been reached in principle.  

Those deals, as well as a separate one for World Baseball Classic rights in Japan, continue an event-based strategy in sports that Sarandos reaffirmed Tuesday. 

Company shares, however, fell more than 6% in after-hours trading as investors were looking for even more.