Netflix's bid for Warner Bros. Discovery collapsed after a monthslong political and financial battle, as well as one unusual episode circulating in Washington's rumor mill that involved what insiders dubbed the "tampon incident," the New York Post reported.
During a visit by a congressional delegation to Netflix headquarters in Los Angeles, Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee, reportedly noticed a basket containing tampons in a men's restroom, a practice some of the more woke companies have adopted to appear more "inclusive."
According to people familiar with the visit, the discovery reinforced concerns among some Republican lawmakers about the company's cultural politics and how such views extend into their programming.
According to a report, Netflix had been nearing a $73 billion deal to acquire major parts of Warner Bros. Discovery, including its studio and streaming operations.
Ultimately, Paramount's $110 billion bid was backed by financing from Oracle co-founder Larry Ellison. His son, David Ellison, runs the company.
Financial backing enabled Paramount to continue raising its bid during the takeover battle, while Netflix — a publicly traded company — faced increasing pressure from investors concerned about the escalating cost of the deal.
As the bidding intensified, Netflix's market value reportedly fell by about $200 billion.
Beyond the price battle, the proposed acquisition also drew intense political scrutiny in Washington.
Some Republicans in Congress and state attorneys general warned the deal could give Netflix excessive power in the streaming market, which has become a dominant way Americans consume entertainment.
Critics also raised concerns that Netflix could use the additional market influence from Warner Bros. Discovery to promote left-leaning themes in its programming that run counter to the Trump administration.
Conservative advocacy groups argue that Netflix content frequently highlights progressive themes such as LGBTQ issues in children's programming.
The issue added to existing tensions around Netflix leadership's political affiliations.
Netflix co-founder Reed Hastings and co-CEO Ted Sarandos have supported Democrat causes, and board member Susan Rice — a former Obama administration official — recently drew criticism from conservatives after warning that corporations aligning with President Donald Trump could face consequences if Democrats return to power.
Sarandos sought to reassure lawmakers through meetings and testimony before the Senate Judiciary Committee's antitrust panel, chaired by Sen. Mike Lee, R-Utah. But opposition continued to build as the bidding war intensified.
Ultimately, Paramount's higher offer and Netflix's unwillingness to match the price led Sarandos to step away from the deal, clearing the path for Paramount Skydance to secure control of Warner Bros. Discovery.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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