Netflix Abandons Warner Bros. Acquisition
Netflix has opted out of its bid to acquire Warner Bros. Discovery after being outbid by Paramount Skydance. The streaming giant’s offer was $27.75 per share, which was surpassed by Paramount’s $31 per share cash bid.
Netflix’s decision to withdraw from the bidding occurred on Thursday night, which led to a more than 9% surge in its stock price on Friday. Bernstein analyst Laurent Yoon projects a 25% gain in Netflix’s stock, citing the company’s disciplined approach to capital allocation. In 2022, Netflix reported a fourth-quarter revenue of $12.05 billion, translating to a 17.6% year-over-year increase, and a net income of $2.41 billion, up 29% from the previous year.
Paramount Skydance’s acquisition of Warner Bros. will strengthen its media presence, consolidating multiple cable networks, two major news brands (CBS and CNN), and streaming services like HBO and Paramount+. The deal awaits regulatory approval and is expected to result in staff reductions.
