“Smart Move by Netflix,” Bernstein Says NFLX’s Decision to Walk Away Is a Win-Win-Win in WBD’s Takeover Battle

FomoAnxiety · 2026-02-27T15:51:22+00:00

Bernstein analyst Laurent Yoon views Netflix's decision to withdraw from the Warner Bros. Discovery deal as a strategic move that refocuses its strengths. He believes this creates a win-win for Netflix, Paramount Skydance, and WBD, anticipating Netflix stock's recovery and growth.

FomoAnxiety

2026-02-27 15:51:22

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Bernstein analyst Laurent Yoon said Netflix’s NFLX +9.09% ▲ choice to walk away from the Warner Bros. Discovery WBD -1.67% ▼ deal is not a setback at all, but a smart move that will allow the company to refocus on its core strengths. He also argued that the outcome ultimately creates a win‑win‑win scenario for all three companies involved in the takeover battle.

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Yoon highlighted that Netflix backed out within hours of WBD formally declaring Paramount Skydance’s PSKY +12.70% ▲ offer a “Company Superior Proposal.” Netflix has long been known for disciplined capital allocation, and the analyst believes that ultimately guided the move. Yoon reiterated a Buy rating and $115 price target on Netflix stock.

Why Bernstein Sees a “Win‑Win‑Win” Outcome

Yoon believes each company walks away with something meaningful.

Netflix: He expects NFLX stock to recover to an above-market multiple, implying a move back above $90 per share in the near term. With the deal drama removed, Netflix can return to its core growth formula, focus on pricing power, subscriber growth, and margin expansion, which Yoon says has fueled its long‑term success and should continue to do so.

**Paramount Skydance: **Even if PSKY is paying a premium, Yoon argued that acquiring WBD is still a better strategic path than continuing a “mediocre standalone trajectory.” The deal gives PSKY a chance to reshape its future. Yoon does not expect the company to push the price much higher, but he sees strategic logic in the move.

Warner Bros. Discovery: WBD shareholders have already seen the stock more than double since PSKY first showed interest in September 2025. PSKY’s $31‑per‑share all‑cash offer, backed by financing guarantees and a massive $7 billion termination fee, stands out as clearly superior to Netflix’s bid.

Which Stock Is a Better Buy?

We used TipRanks’ Comparison Tool to line up all three companies in the takeover saga and see which stock analysts favor. According to analysts, Netflix stock has the highest upside potential of 23.98%.

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