Ted Sarandos Downplays Netflix M&A Reports, But Says Gaining Access to ‘Pools of IP’ Could Be ‘Super Interesting’

Netflix co-CEO Ted Sarandos isn’t quite closing the door on reports that the streamer is ramping up its acquisitions, calling the possibility of gaining access to “pools of IP” “super interesting.”

“We have traditionally been very strong builders over buyers, and that really hasn’t fundamentally changed,” Sarandos said. “But if there are opportunities that give us access to pools of IP that we can develop into and against, that could be super interesting.”

The co-CEO also pointed out that M&A activity for the streamer is “mostly” centered on building IP that can be transformed into new franchises for Netflix, downplaying reports that Netflix might be considering acquiring Paramount or another studio.

“We’ve always looked at these things in terms of the opportunity for IP, versus those assets — some of those assets are stressed for a reason,” Sarandos continued. “We’re mostly looking at — when we look into our M&A activity — would be mostly around IP that we can develop into great content for our members, which is our real strength in the business.”

Later in the call, Sarandos applauded its existing IP for boosting recent releases, including “Extraction 2,” which pushed the first movie in the franchise into the streamer’s top 10 list, as well as “Queen Charlotte: A Bridgerton Story,” whose release also boosted the first and second installments of “Bridgerton” into Netflix’s most-watched TV series of the week.

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Sarandos’ comments came a month after Business Insider reported that the streamer was aiming for M&A to play a bigger role in its business model, with one banker who had discussed potential opportunities with Netflix telling the outlet, “They’re open for business — that’s a new evolution.”

While the report noted previous strategic purchases made by Netflix across animation and gaming, including Australian animation studio Animal Logic, “Oxenfree” maker Night School, Spry Fox and the Roald Dahl Story Company, which was acquired in 2021 with the intent to use the “Willy Wonka” author’s titles for its original programming, Business Insider suggested the streamer might consider a studio next, as well as the potential to buy gaming, advertising or sports companies.

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