US stock movement | Warner Bros. acquisition battle "settled" Netflix(NFLX.US) up over 8% before market open Paramount's Top Gun(PSKY.US) rose nearly 4%

According to Cailian Press, on Friday, Netflix (NFLX.US) stock price rose over 8% in pre-market trading, while Paramount Taimu (PSKY.US) increased nearly 4%. In the news, after Paramount Taimu raised its bid to acquire Warner Bros. Discovery (WBD.US), Netflix announced it would abandon its acquisition of Warner Bros. Discovery’s film and TV studios and HBO Max streaming service, withdrawing from the bidding war. Earlier this week, Paramount Taimu increased its all-cash offer to acquire all shares of Warner Bros. Discovery from $30 to $31 per share, exceeding Netflix’s offer of $27.75 per share. Additionally, Paramount Taimu’s latest bid includes a clause — if the proposed merger fails to gain regulatory approval, the company will pay a $7 billion breakup fee. Paramount Taimu also agreed to bear the $2.8 billion breakup fee if the Warner Bros. Discovery deal with Netflix is not completed.

On Thursday, Netflix stated: “The deal we previously negotiated could have created shareholder value and had a clear path to regulatory approval. However, to match Paramount Taimu’s latest bid, the transaction would no longer be financially attractive, so we have declined to follow up on the bid.”