From:
Columbia Business School’s Shivaram Rajgopal wrote in Forbes about Netflix’s decision to walk away from a proposed acquisition of Warner Bros. Discovery. Rajgopal argued that the company’s board demonstrated strong corporate governance by declining a deal that would likely have produced lower returns than Netflix’s existing business. He noted that Netflix’s return on invested capital significantly exceeded the projected returns from the acquisition, highlighting the importance of disciplined capital allocation and board oversight in major corporate transactions.
