Netflix stunned the entertainment world this week when it declined to raise its bid for Warner Bros. Discovery, setting the stage for Paramount Skydance to win ownership of the Hollywood studio.

At the time, Netflix co-CEOs Ted Sarandos and Greg Peters said they were being financially disciplined. Now reporting in Bloomberg offers more details about why Netflix executives backed down from a bidding war that they seemed to win back in December. 

For one thing, the streaming giant’s shareholders appeared deeply skeptical that the deal was a good one — Netflix’s share price declined 30% since announcing the acquisition