Netflix’s Acquisition Risks Heightened
Shares of Netflix (NASDAQ: NFLX) surged nearly 6% on Wednesday amid increasing uncertainty over its $83 billion acquisition of Warner Bros. Discovery (NASDAQ: WBD) assets, including the HBO Max streaming service. Concerns from Netflix shareholders grew, especially as the company’s stock has fallen about 20% since the acquisition was announced on December 5.
In a competing move, Paramount Skydance (NASDAQ: PSKY) raised its all-cash bid for WBD to $31 per share, offering to pay a $7 billion breakup fee if the merger fails. Concurrently, 11 state attorneys general urged the U.S. Department of Justice to review the Netflix acquisition for potential decreased competition in the streaming market, complicating Netflix’s pursuit.
