Netflix Exits Warner Bros. Discovery Pursuit After Rival Bid Deemed Superior

Overview

• Netflix withdrew its offer after Warner Bros. Discovery informed the company that a Paramount Skydance proposal was superior.
• Netflix had proposed $27.75 per share contingent on a spin-off of WBD’s cable networks, while the rival offer was $31 per share.
• The company collected a reported $2.8 billion breakup fee as it ended the takeover effort.
• Netflix shares rose 13.77% to $96.24 on Friday, with trading volume around 190.8 million shares, roughly 280% above the three-month average.
• Management said it will direct $20 billion toward film production, broaden its entertainment slate, and resume share repurchases.