Netflix Stock Jumps After Walking Away From Warner Bros. Deal

Netflix NFLX climbed about 10% on Friday after confirming it will not raise its takeover offer for Warner Bros. Discovery, stepping back from the bidding process as a rival proposal gained board support.

The streaming company said a higher bid no longer met its financial criteria after Warner Bros. Discovery determined an all-stock-and-cash proposal from Paramount Skydance offered greater value. The revised competing offer of $31 per share values Warner Bros. Discovery at roughly $108 billion.

Netflix indicated it will instead prioritize internal investments, planning to allocate about $20 billion in 2026 toward film and television production as it expands original content output. The company also said it intends to resume share repurchases under its existing capital allocation framework.

As part of the terminated agreement, Warner Bros. Discovery is required to pay Netflix a breakup fee of approximately $2.8 billion, which may partially offset costs tied to the failed transaction.

Shares of Warner Bros. Discovery fell about 2% following the development, while Paramount Skydance rose roughly 8% as investors reacted to the improved offer and shifting deal dynamics in the media sector.