Netflix's failed pursuit of Warner Bros Discovery (WBD) for $83bn could prove strategically wise. The streaming giant lost the bidding war to Paramount Global after the latter raised its offer to $111bn. This outcome removes Netflix's potential access to WBD's vast library, including Harry Potter and Batman franchises, and its 100-year film archive.

Instead, Netflix retains its current model, which has seen subscriber growth surge nearly 67% since 2020, though sustaining that pace grows increasingly difficult. The deal's rejection also spares Netflix the financial strain of a $83bn acquisition that would have left it with debt equivalent to nearly four times its enlarged ebitda — a ratio far above its current manageable level.