As investors celebrate Netflix’s decision to withdraw from the Warner Bros. bid, the company’s stock surges
Friday saw a more than 9% increase in Netflix’s stock as investors praised the company’s move to withdraw from the Warner Bros. bidding war. Discovery and Paramount Skydance fought for months for some of Hollywood’s most valuable properties.
Netflix rejected to raise its own bid of $27.75 per share or match Paramount’s most recent offer of $31 per share for Warner Bros.’ studio and streaming assets, claiming the merger was «no longer financially attractive.»
Investors applauded the move because the streaming behemoth’s shares had dropped more than 18% since it revealed its deal with Warner Bros. on December 5.
Investors and analysts had questioned if Netflix’s offer was an offensive departure from its traditionally disciplined approach of growing rather than acquiring, or a defensive attempt to thwart a potential rival.
In the meantime, David Ellison’s Paramount stock increased 5%.
Supported by billionaire Larry Ellison and headed by his son, Paramount CEO David Ellison, the Paramount consortium broadened its funding commitments, including $45.7 billion in stock, and raised its termination fee to $7 billion in the fight for Warner Bros.
