Netflix’s Co-CEO Explains Why He Quit the Warner Bros. Fight

When Netflix Inc. dropped out of the bidding for Warner Bros. Discovery Inc. on Feb. 26, the news came as a surprise to many in Hollywood.

Netflix had agreed to buy Warner Bros.’ studios and HBO Max streaming business in December and co-Chief Executive Officer Ted Sarandos had done a string of press appearances and meetings talking about the deal, including at the White House.

In his first interview since abandoning the pursuit, Sarandos told Bloomberg News the decision to drop out had actually been made earlier, based on various bidding scenarios Netflix had worked out in advance.

“We knew ...