Netflix Abandons $73B Warner Bros. Deal After Tampon Incident

GOP lawmakers' discovery of tampons in Netflix's men's room fueled political opposition to the proposed merger.

Published on Mar. 2, 2026

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Netflix CEO Ted Sarandos has abandoned his $73 billion plan to acquire Warner Bros. Discovery after facing growing political opposition, including from a Republican congressman who was disturbed to find a tampon dispenser in the men's restroom during a visit to Netflix's headquarters.

Why it matters

The 'Tampon Incident' highlighted concerns among conservative lawmakers that Netflix is pushing a progressive agenda through its programming and corporate policies, making the proposed merger politically unpalatable. The failed deal represents a major setback for Netflix's ambitions to expand its market power in the streaming industry.

The details

During the deal negotiations, a delegation of GOP lawmakers visited Netflix's offices, and one attendee, Missouri Congressman Jason Smith, was reportedly 'pretty disturbed' to find a basket of tampons in the men's restroom. This discovery fueled concerns that Netflix was normalizing transgender issues, which many conservatives view as harmful. The Tampon Incident, as it's become known, was seen as proof that Netflix's politics did not align with those of the Republican lawmakers who would have to approve the merger.

  • In recent weeks, Netflix CEO Ted Sarandos launched a charm offensive on GOP lawmakers and the White House, worried that political concerns could derail the Warner Bros. deal.
  • Last month, Sarandos was grilled on these matters by a Senate Judiciary antitrust subcommittee headed by GOP Nevada senator Mike Lee.
  • Several weeks ago, a delegation of GOP lawmakers, including Congressman Jason Smith, visited Netflix's headquarters in Los Angeles.

The players

Ted Sarandos

The CEO of Netflix who abandoned the company's $73 billion plan to acquire Warner Bros. Discovery.

Jason Smith

A Republican congressman from Missouri who chairs the House's powerful Ways and Means committee and was disturbed to find a tampon dispenser in the men's restroom during a visit to Netflix's offices.

Netflix

The American media-services provider and production company, known for its popular streaming platform.

Warner Bros. Discovery

The media conglomerate that was the target of Netflix's $73 billion acquisition bid.

Paramount Skydance

A media company that submitted a competing $80.5 billion offer for Warner Bros. Discovery, ultimately leading Netflix to abandon its deal.

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The takeaway

The failed Netflix-Warner Bros. merger highlights the growing political divide over corporate policies and programming that are perceived as promoting progressive or transgender-inclusive values. This incident underscores the challenges tech and media companies face in navigating an increasingly polarized political landscape.