Netflix co-CEO Ted Sarandos said Sunday he knew “right away” he would decline to counter Paramount’s winning attempt to buy Warner Bros. Discovery, admitting rival chief executive David Ellison made a superior offer. 

Netflix dropped its bid to buy Warner Bros. Discovery on Thursday after the company announced Paramount’s latest bid to buy all of its assets, including CNN, was “superior.”

“We had a very tight range that we’d be willing to pay and made that offer back when we closed this deal. We hadn’t moved much from that, except for moving to cash, which served to move the deal faster. I’m happy where we got in and happy where we got out,” Sarandos told Bloomberg. 

“We knew right away, when we got the notice on Thursday that they had a superior offer and the details of that deal,” he continued. “We knew exactly what we were going to do.” 

NETFLIX BACKS OUT OF WARNER BROS BIDDING WAR AFTER PARAMOUNT MADE ‘SUPERIOR’ OFFER

Netflix co-CEO Ted Sarandos said he knew “right away” he would decline to counter Paramount’s latest attempt to buy Warner Bros. Discovery. (David Benito/FilmMagic via Getty Images / Getty Images)

In December, Warner Bros. announced it had reached a deal with Netflix to buy the Hollywood studio and HBO for $83 billion, prompting Paramount to launch a $108 billion hostile takeover bid for the entire company, including all of its cable assets like CNN, which would have been spun off into a separate company under the Netflix deal.

Sarandos suggested that President Donald Trump was largely interested in the deal because of CNN, the news network that he has long criticized. 

“Once it was clear that we weren’t in the CNN business, it was a lot less interesting. He didn’t care that much more about our deal,” he said.

Sarandos predicted that Paramount Skydance Corp. will ultimately need to slash a significant number of jobs. His comment came after CNN insiders told Fox News Digital that staffers feel “a mix of despair, apprehension and curiosity” as they await details. 

“It would be less production, less people working,” Sarandos told Bloomberg. 

MOOD IS ‘HORRIFIC’ INSIDE CNN AS STAFFERS BRACE FOR CHANGE AMID POTENTIAL PARAMOUNT TAKEOVER, INSIDERS SAY

Netflix co-CEO Ted Sarandos told Bloomberg he was “happy where we got out” of the bid to buy Warner Bros. Discovery. (Charley Gallay/Getty Images for Netflix / Getty Images)

Paramount’s revised offer raised WBD’s value to $31 per share, putting the company’s valuation at $111 billion. Paramount will additionally pay the $2.8 billion termination fee to Netflix after WBD backed out of their deal.

Ellison’s billionaire father, Larry Ellison, is personally backing Paramount’s bid, committing $45.7 billion in equity through the Ellison Trust, while Bank of America Merrill Lynch, Citi and Apollo will provide a $57.5 billion debt commitment.

The Netflix honcho also said Paramount has major regulatory hurdles to clear.

“Even when we were thinking about keeping these businesses together and running, we knew that we had a difficult task ahead of integration. I can’t imagine doing all that and trying to cut billions and billions of dollars. Today, Paramount has half of the people that they had one year ago. So that gives you some sense of where this is heading for the town and for the business,” Sarandos said. 

Last month, Trump called on Netflix to fire board member Susan Rice immediately or “pay the consequences” after the former Obama official warned that corporations she said had “taken a knee” to Republican pressure should not expect forgiveness from Democrats if they return to power.

PARAMOUNT REFUSES TO BACK DOWN IN WARNER BROS. DISCOVERY TAKEOVER FIGHT AGAINST NETFLIX

President Donald Trump largely lost interest in the Netflix deal once CNN wasn’t involved, according to Ted Sarandos.  (Joe Raedle/Getty Images / Getty Images)

Sarandos told Bloomberg he spoke with Rice but never considered removing her from the board. 

CNN has largely embraced anti-Trump programming for much of the last decade, and the president has responded by publicly criticizing the network on a regular basis. Last year, The Wall Street Journal reported that Ellison told Trump officials that he’d make sweeping changes to CNN if he became its owner. 

One CNN insider said they were trying to keep an “open mind” but said it’s easy to understand why staffers are upset given the reporting on Ellison and Trump discussing changes.

“It’s existential for the brand to be owned by an individual who has personal allegiance to a political figure and is not even answering to public markets,” they told Fox News Digital. 

The White House didn’t immediately respond to Fox News Digital’s request for comment.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Fox News Digital’s Joseph A. Wulfsohn contributed to this report. 

NEW YORK — The S&P 500 (^GSPC) extended losses into early March 2026 trading, pressured by escalating geopolitical tensions in the Middle East following U.S. and Israeli military strikes on Iran, which sent oil prices sharply higher and prompted a flight to safe-haven assets.

The benchmark index closed at 6,878.88 on Feb. 27, down 29.98 points or 0.43%, capping a volatile week that saw broader market retreats amid renewed inflation concerns from surging energy costs. On March 2, futures indicated further downside, with S&P 500 contracts sliding around 1% pre-market before opening lower, trading near 6,855-6,856 levels in early sessions with intraday ranges dipping to approximately 6,796 before partial recovery attempts.

The pullback reflects a classic risk-off environment triggered by weekend military actions. U.S. and Israeli forces targeted Iranian sites in what has been described as “Operation Epic Fury,” prompting fears of prolonged conflict, potential disruptions in the Strait of Hormuz — through which about one-fifth of global oil flows — and retaliatory measures. Brent crude surged as much as 8-13% at peaks, trading near $79-$82 per barrel early in the week, while West Texas Intermediate climbed toward $72-$73, marking multi-month highs and amplifying worries about sticky inflation.

Gold futures rallied over 3%, surpassing recent levels as investors sought protection, while the U.S. dollar strengthened against major currencies. The VIX, Wall Street’s fear gauge, elevated toward 20, signaling heightened volatility as traders braced for developments.

“The combination of geopolitical escalation and an oil shock is forcing a rapid repricing of risk,” one market analyst commented in a Monday note. “Higher energy prices threaten to delay any Federal Reserve easing cycle, putting pressure on valuations across equities, especially in growth-sensitive sectors.”

The S&P 500 has shown resilience earlier in 2026, with year-to-date performance modestly positive in some calculations around 0.5% to 1% despite February’s softness. The index ended the prior month lower overall, influenced by softer sentiment in AI and technology names amid broader rotation. However, the latest catalyst has accelerated the defensive shift, with energy and select industrial names providing relative outperformance while consumer discretionary, tech-heavy constituents and airlines faced headwinds from elevated fuel costs.

Broader indices mirrored the caution. The Dow Jones Industrial Average futures dropped over 500 points at one point, while the Nasdaq Composite — already under pressure from prior sessions — saw amplified declines due to its growth orientation. European and Asian markets opened sharply lower, with some benchmarks down 1-2% as the conflict’s global implications rippled outward.

Analysts noted that persistent oil elevation could complicate the economic soft-landing narrative that buoyed stocks through much of the cycle. Recent Producer Price Index data had already introduced hotter-than-expected inflation readings, and the energy spike risks reinforcing those trends ahead of key labor market reports and corporate earnings.

Despite the near-term turbulence, longer-term optimism lingers for some observers. The S&P 500 remains above key technical supports, including its upward-sloping 10-month exponential moving average in certain analyses, suggesting the broader uptrend intact unless escalation materially worsens. Defensive sectors like consumer staples have shown relative strength in recent rotations, while international exposure via emerging markets or Europe has outperformed in spots amid diversification plays.

Investors continue monitoring diplomatic channels for de-escalation signals, alongside upcoming economic releases that could influence Fed policy expectations. Any stabilization in the Middle East or cooling in oil markets might support a rebound in risk assets, though prolonged uncertainty keeps caution front and center.

The index’s valuation, trading at levels reflecting forward earnings growth tempered by macroeconomic risks, appears balanced for total return seekers willing to weather volatility. Consensus views maintain a constructive stance on U.S. large-caps, with emphasis on quality names resilient to energy shocks and potential rate path adjustments.

As March trading unfolds, the S&P 500’s performance will hinge on the trajectory of the conflict, commodity prices and incoming data. For now, the market digests the geopolitical shock, balancing growth potential against immediate headwinds from higher costs and uncertainty.

Texas Gov. Greg Abbott warned that Iranian “sleeper cells” operating inside the United States pose a serious threat following Operation Epic Fury, saying the danger must be taken “seriously” as the Lone Star State ramps up security efforts.

“You oftentimes see when there’s a war breaking out like this, where the United States may be going against a country like Iran, that you could have either sleeper [cells] or lone wolves acting,” Abbott told “Mornings with Maria” on Monday.

“That’s exactly why we increased the number of Texas Department of Public Safety officers to be patrolling the streets and patrolling sensitive areas and why I deployed the Texas National Guard to do the same thing,” he said.

FBI RAISES COUNTERTERROR TEAMS TO HIGH ALERT AMID IRAN TENSIONS

Texas Gov. Greg Abbott speaks during a news conference with U.S. Secretary of Agriculture Brooke Rollins at the Texas Capitol in Austin on Aug. 15, 2025. (Jay Janner/Austin American-Statesman via Getty Images / Getty Images)

Heightened tensions followed a deadly shooting in Austin early Sunday, when suspect Ndiaga Diagne, a naturalized U.S. citizen born in Senegal, opened fire near a bar in the downtown area, killing two and injuring 14 others.

Diagne wore a sweater reading “PROPERTY OF ALLAH” during the attack.

According to media reports, law enforcement officials found the flag of the Islamic Republic of Iran and photos of its leaders in his home.

IRAN REGIME ‘ABOUT TO COLLAPSE,’ PRINCE REZA PAHLAVI SAYS AS ECONOMIC CRISIS DEEPENS

A demonstrator holding portrait of Iran’s Supreme Leader Ayatollah Ali Khamenei reacts outside the City Hall during a protest against U.S. and Israeli attacks on multiple cities across Iran on February 28, 2026, in Los Angeles, Calif.  (Qian Weizhong/VCG/Getty Images / Getty Images)

“There are other details that will be coming out about the shooter and his connections to terrorism that will make clear [that] this was a lone wolf activity where this shooter intended to wreak havoc here in Texas, here in the United States, because of his ties and sympathies with Iran,” Abbott said.

Abbott and other Republicans have long cautioned against the consequences of open borders under the Biden administration. He echoed those warnings during his FOX Business appearance, telling Maria Bartiromo the shooting raises other questions.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“It calls into question a lot of people like that who are here in the United Sates, who came from other countries,” he said.

“The United States has to do a far better job in trying to vet and… ongoingly evaluate those who have come to our country who could pose a danger.”

Fox News Digital’s Asra Q. Nomani contributed to this report.