Introduction: Netflix shares jump after walking away from Warner Bros Discovery deal
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
Every good drama needs a few twists and turns. And the race for ownership of Warner Bros Discovery has certainly delivered.
Overnight, Netflix has walked way from the deal, declining to match a new, improved takeover offer from its rival, Paramount Skydance.
Netflix’s hopes were blown away by Paramount lifting its offer for the whole of Warner Bros to $31 per share, beating Netflix’s bid of $27.75 per share for Warner Bros’ streaming and studio assets.
Backing out of the bout, Netflix said:
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix’s shares have surged by 8.5% in after hours trading, suggesting relief that the streaming company has not risked overpaying for Warner Bros.
Netflix’s shares had fallen by almost a third over the last six months.
This clears way for Paramount to win WBD’s assets, including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
It would also give Paramount, owned by Larry Ellison (a friend of Donald Trump) ownership of CNN – he already controls rival news network CBS.
Any deal still need to win regulatory approval, though, so this may not be the final act in the Warner Bros Discovery story…..
The agenda
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7am GMT: Sweden’s GDP report for Q4 2025
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10.30am GMT: India’s GDP report
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1pm GMT: Bank of England chief economist Huw Pill: Panellist at Elgin Advisory and Society for Professional Economists ‘UK & US economics’ webinar
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1.30pm GMT: Canada’s GDP report for Q4 2025
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1.30pm GMT: US producer prices inflation report for January
Key events
Robert Fishman, senior analyst at Moffett Nathanson, says a combined Paramount/Warner Bros could be a ‘serious industry player’, if management stump up the necessary funds.
Fishman says:
“Altogether, while the war for Warner Bros. Discovery ended sooner than expected, this result confirms our ongoing view that WBD was a necessity for PSKY while Netflix was being opportunistic.
It signals that Netflix believes in its internal growth story enough to maintain M&A discipline. We also believe the future Paramount Skydance Warner Bros. Discovery — they’ll need a better name — could finally transform two subscale media companies into a more serious industry player, provided management has the financial flexibility to execute on its vision.”
California Attorney General: Paramount/Warner Bros is not a done deal
Analysts suspect that regulators, such as California Attorney General Rob Bonta, could attempt to challenge Paramount’s takeover of Warner Bros Discovery.
Bonta, a Democrat, said late on Thursday that his office would take a ‘vigorous’ approach to the deal.
In a statement issued Thursday evening, Bonta said:
“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
Introduction: Netflix shares jump after walking away from Warner Bros Discovery deal
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
Every good drama needs a few twists and turns. And the race for ownership of Warner Bros Discovery has certainly delivered.
Overnight, Netflix has walked way from the deal, declining to match a new, improved takeover offer from its rival, Paramount Skydance.
Netflix’s hopes were blown away by Paramount lifting its offer for the whole of Warner Bros to $31 per share, beating Netflix’s bid of $27.75 per share for Warner Bros’ streaming and studio assets.
Backing out of the bout, Netflix said:
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix’s shares have surged by 8.5% in after hours trading, suggesting relief that the streaming company has not risked overpaying for Warner Bros.
Netflix’s shares had fallen by almost a third over the last six months.
This clears way for Paramount to win WBD’s assets, including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
It would also give Paramount, owned by Larry Ellison (a friend of Donald Trump) ownership of CNN – he already controls rival news network CBS.
Any deal still need to win regulatory approval, though, so this may not be the final act in the Warner Bros Discovery story…..
The agenda
-
7am GMT: Sweden’s GDP report for Q4 2025
-
10.30am GMT: India’s GDP report
-
1pm GMT: Bank of England chief economist Huw Pill: Panellist at Elgin Advisory and Society for Professional Economists ‘UK & US economics’ webinar
-
1.30pm GMT: Canada’s GDP report for Q4 2025
-
1.30pm GMT: US producer prices inflation report for January