Key Stats for Netflix Stock
- Pre-market Price change for NFLX stock: 9%
- $NFLX Share Price as of Feb. 26: $85
- 52-Week High: $134
- $NFLX Stock Price Target: $111
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What Happened?
Netflix (NFLX) stock is up almost 9% in premarket trading after the company walked away from its deal to acquire Warner Bros. Discovery’s studio and streaming assets.
The drama started back in December, when Netflix agreed to buy WBD’s studio and streaming businesses for $27.75 per share — a deal valued at around $72 billion.
But Paramount Skydance had other ideas.
Paramount launched a hostile bid to acquire all of WBD, including its linear cable networks such as CNN, TBS, and TNT. It kept raising its offer, eventually landing at $31 per share, all cash.
Last week, Netflix gave WBD a seven-day window to reopen talks with Paramount. That led to Paramount’s higher bid, which WBD’s board deemed superior to Netflix’s offer. Netflix had four business days to respond with a better deal. Instead, it passed.
Co-CEOs Ted Sarandos and Greg Peters were direct about why: “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.”
Netflix stock had fallen heading into this deal announcement, with investors worried about the cost and complexity of absorbing a legacy media company.
Today’s pre-market pop suggests the market agrees that walking away was the right call.
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What the Market Is Telling Us About NFLX Stock
The 9% jump in Netflix stock tells a clear story — investors are relieved.
The Warner Bros. acquisition would have been Netflix’s biggest deal ever, and the price tag kept climbing.
Paying a premium for cable networks like CNN and TNT was never part of the original pitch. Netflix stock was always priced as a pure-play streaming company, not a legacy media conglomerate.
By walking away, Netflix preserved its financial discipline and its identity. The company still has a strong content pipeline, a fast-growing ad business expected to roughly double to $3 billion in 2026, and 14% revenue growth forecast for the year.
Sarandos and Peters made the right call, framing this as a “nice to have, not a must have” — and Netflix stock rewarded them for it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
