Netflix, Paramount shares surge after Warner battle ends

Shares of Netflix climbed more than 9% in premarket trading on Friday after the company confirmed it was exiting the months-long bidding battle for Warner Bros. Discovery.

Meanwhile, Paramount Global rose about 10% after prevailing in the contest for the prized studio and streaming assets, News.Az reports, citing Reuters.

The conclusion of the takeover fight shifts attention to potential antitrust scrutiny in the United States and Europe, including an active investigation in California. Warner Bros shares edged slightly lower following the announcement.

A consortium led by Paramount and backed by billionaire Larry Ellison — under the leadership of his son, Paramount CEO David Ellison — intensified its pursuit of Warner Bros in recent weeks. The group returned to the negotiating table with a revised offer of $31 per share, topping Netflix’s $27.75 bid for the studio and streaming business.

Netflix told Reuters it withdrew after the price escalated beyond what it considered financially prudent. “We’ve always been disciplined… the deal is no longer financially attractive,” the company said.

Analysts described Netflix’s bid as both offensive and defensive — aimed at strengthening its content portfolio while preventing rivals from gaining scale — but at a high cost. “For now, at least, the market seems to be pricing this as a win for everyone,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

To secure the deal, the Paramount consortium raised its termination fee to $7 billion and expanded its financing commitments, including $45.7 billion in equity.

Morningstar analysts noted that Paramount’s relationship with the U.S. administration could help ease regulatory concerns. They also pointed to precedent from the Department of Justice’s approval of Disney’s acquisition of Fox as a possible indicator for how regulators may approach the Paramount-Warner combination.

News.Az 

By Nijat Babayev