Gregory Peters on M&A discipline
From Netflix Inc ($NFLX) Q1 2026 Earnings Call · · Castify Earnings Call
“The most important benefit of this entire exercise though was that we tested our investment discipline. And when the cost of this deal grew beyond the net value to our business and to our shareholders, we were willing to put emotion and ego aside and walk away. And doing it at this level I think sets up our teams to understand that that's the expectation of them day-to-day.”
On , Gregory Peters, Co-CEO, President & Director at Netflix Inc, spoke about M&A discipline during Netflix Inc ($NFLX) Q1 2026 Earnings Call on Castify Earnings Call.
About Gregory Peters
During Netflix's Q1 2026 earnings call on April 16, 2026, Peters stated that the company was maintaining its full-year guidance for 12 to 14% revenue growth and a 31.5% operating margin, which includes roughly doubling the advertising business to about $3 billion. He noted that the advertiser base grew over 70% year-over-year in 2025 to more than 4,000 advertisers, and that programmatic advertising was on its way to becoming more than 50% of the non-live ads business. Peters described the video game market as a significant opportunity, citing approximately $150 billion in consumer spend excluding China and Russia. He also addressed a decision to walk away from a deal when its cost exceeded the net value to the business, saying the move tested the company's investment discipline. On the Q1 2025 earnings call, Peters declined to comment on specific sports rights opportunities, reiterating that the company's live event strategy remained focused on breakthrough events that make economic sense. He stated that Netflix did not have a five-year forecast or guidance, but that the company was working to build "the most loved and valued entertainment company." Peters also said that in the absence of meaningful M&A, growing free cash flow would be redeployed into share repurchases.