Why did Netflix drop its bid for Warner Bros. Discovery?

Netflix withdrew its offer because the required price to match Paramount Skydance's latest bid made the deal no longer financially attractive.

How did Netflix's stock perform after dropping the deal?

Netflix shares surged nearly 10% in after-hours trading following the announcement that they would not increase their offer for Warner Bros. Discovery.

What was Paramount's final offer for Warner Bros. Discovery?

Paramount sweetened its offer to buy all of Warner Bros. Discovery for $31 per share, an increase from its previous offer.

Home / Business and Economy / Netflix Drops Warner Bros. Deal, Shares Surge

Netflix Drops Warner Bros. Deal, Shares Surge

27 Feb

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Summary

Netflix stock rose 10% after declining to increase its Warner Bros. offer.
Paramount sweetened its offer to buy Warner Bros. Discovery for $31 per share.
Netflix cited financial unattractiveness at the required matching price.

Netflix Drops Warner Bros. Deal, Shares Surge

Netflix stock saw a significant boost, climbing nearly 10% in after-hours trading to over $92 per share, following its decision to walk away from the Warner Bros. Discovery acquisition. The company had initially agreed to a deal in December for $27.75 per share.

This week, Paramount sweetened its offer to acquire Warner Bros. Discovery, including its cable business, raising it from $30 to $31 per share. Warner Bros. possesses rights to valuable intellectual property, including the DC Comics library and 'Harry Potter' franchises.