Netflix, Inc. (NASDAQ:NFLX) shares climbed in Thursday’s extended trading after the company said it declined to raise its offer to acquire Warner Bros. Discovery Inc. (NASDAQ:WBD).
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Here’s what to know.
Netflix Walks Away
In a statement released Thursday evening, Netflix officially decided to walk away from its bid for Warner Bros., choosing financial discipline over a bidding war.
After WBD’s board officially labeled Paramount Skydance‘s (NASADQ:PSKY) offer a “superior proposal,” Netflix co-CEOs Ted Sarandos and Greg Peters announced they would not match the higher price.
The company stated that while the original negotiated transaction would have created value, the cost to match the new Paramount Skydance offer was no longer “financially attractive.”
The co-CEOs clarified that acquiring WBD was “nice to have” at a specific price point, but certainly not a “must have” for the company’s future.
Netflix thanked WBD leadership for a “fair and rigorous process,” acknowledging the strength of Warner Bros.’ iconic brands even as it withdrew.
NFLX Price Action
Netflix shares were up 9.62% at $92.69 in Thursday’s extended session, according to data from Benzinga Pro.
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