Netflix Stock (NFLX) Jumps after Streaming Giant Walks Away from Warner Bros. (WBD) Deal

2026-02-27 03:11:13

Streaming giant Netflix (NFLX) has decided to walk away from its bid for Warner Bros. (WBD), marking a dramatic turn in one of Hollywood’s most closely watched takeover battles. Following the news, NFLX stock rose about 10% in the after-hours trading.

Claim 50% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

This move came after Warner Bros.’ board determined that Paramount Skydance’s (PSKY) latest offer qualified as a “Superior Proposal.” Netflix confirmed it would not raise its bid, effectively ending its pursuit of the merger.

Co‑CEOs Ted Sarandos and Greg Peters said the company remained disciplined throughout negotiations and concluded that matching Paramount Skydance’s higher price “is no longer financially attractive.”

Instead of escalating the bidding war, Netflix is turning its focus back to its core business. The company highlighted its strong organic growth, plans to invest roughly $20 billion this year in films and series, and its intention to resume share buybacks under its capital allocation strategy.

The move clears the way for Paramount Skydance, whose higher all-cash bid and willingness to cover breakup fees shifted the deal landscape.

Is Netflix a Good Stock to Buy Now?

Turning to Wall Street, NFLX stock has a Moderate Buy consensus rating based on 27 Buys, nine Holds, and one Sell assigned in the last three months. At $113.88, the average Netflix stock price target implies a 34.63% upside potential.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.