Netflix Shares Surge After Streamer Drops Warner Bros. Bid

ETHReserveBank · 2026-02-27T15:42:47+00:00

Netflix's shares surged after it opted not to match Paramount's $31 per share bid for Warner Bros. Discovery, resulting in a conclusion to the bidding war. Paramount's offer was deemed superior, raising investor optimism.

ETHReserveBank

2026-02-27 15:42:47

Abstract generation in progress

Key Takeaways

Netflix shares soared on Friday after the streaming giant gave up its bid to acquire Warners Bros. Discovery’s movie studio and streaming service.
Warner Bros. on Thursday said a new $32 per share offer from Paramount was “superior” to the agreement it reached with Netflix in December.

Get personalized, AI-powered answers built on 27+ years of trusted expertise.

ASK

Netflix decided not match Paramount Skydance’s offer for Hollywood giant Warner Bros. Discovery. Investors of both bidders are cheering the news.

Shares of Netflix (NFLX) soared 9% in premarket trading Friday, a day after the streaming giant announced it wouldn’t match Paramount’s revised bid to acquire all of Warner Bros. Discovery (WBD) for $31 a share. Shares of David Ellison-led Paramount (PSKY) rose 4%, while those of WBD declined 1%.

“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S.,” Netflix co-CEOs Ted Sarandos and Greg Peters wrote yesterday. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Why This Is Important

Netflix’s decision not to match Paramount Skydance’s new offer likely concludes the months-long battle between the two media giants to gain control of Warner Bros.'s vast library. Uncertainty about the final cost of its pending Warner Bros. acquisition has weighed on Netflix shares, which are down about 15% since the deal was announced in December.

Earlier Thursday, WBD wrote that its board concluded Paramount’s increased offer to acquire the entire company was a “Company Superior Proposal” to its deal with Netflix, announced in December, for the streamer to acquire Warner Bros., consisting of its film and television studios, its HBO Max streaming service, and HBO.

The updated $31 per share offer values WBD at $77 billion, excluding the company’s debt and a $7 billion termination fee to be paid to Netflix. If completed, the acquisition could cost Paramount Skydance up to $110 billion.

Related Educations

Understanding Mergers & Acquisitions (M&A): Types and Valuations

Hostile vs. Friendly Takeovers: Key Differences Explained

WBD said yesterday that Netflix would have four business days to propose revisions to their merger agreement “so that the PSKY proposal would cease to constitute a ‘Company Superior Proposal,’” but Netflix elected to bow out of the race.

Netflix’s concession likely concludes a long and at times bitter battle over Warner Bros.'s rich catalogue of media assets, including HBO and intellectual property rights to some of the world’s largest film franchises like Harry Potter and Lord of the Rings.

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]

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.