Netflix Abandons Warner Bros. Bid, Focuses on Content Investment
On October 13, 2023, Netflix (NASDAQ: NFLX) officially ceased its attempt to acquire Warner Bros. Discovery (NASDAQ: WBD), declining to match Paramount Skydance’s $31-per-share bid. Instead of pursuing a studio acquisition, Netflix will invest $20 billion in content production in 2023, a significant increase from its prior commitment of $11.5 billion for 2026.
Following the news, Netflix shares surged 11.6%, while Warner Bros. stocks fell approximately 2% and Paramount’s rose more than 18%. This announcement added around $40 billion to the combined market capitalizations of the three companies. Netflix will also resume its stock buyback program, paused during the bidding, strengthening its financial position as it avoids incurring an additional $40 billion in debt to finance the acquisition.
