Netflix Share Drop Accelerates After $83 Billion Warner Bros Discovery Deal
Netflix shares closed at $82.21 after slumping 21.8% in Q4 following its announcement to acquire Warner Bros Discovery for $83 billion. The streaming giant’s stock also fell 7.2% over the past month as investors fret over deal pricing and added leverage.
1. Stock Performance Decline
Netflix shares plunged 21.8% in Q4 and closed at $82.21 after the acquisition announcement. The stock also lost 7.16% over the past month and is down 19.98% over the last twelve months, with a market capitalization of $348.7 billion.
2. Acquisition Pricing Concerns
The company unveiled plans to buy Warner Bros Discovery for $83 billion, sparking investor anxiety over valuation and increased leverage. Market participants are scrutinizing the deal’s premium and its potential to strain Netflix’s balance sheet.
3. Investor and Activist Reactions
LVS Advisory held Netflix at an 18% weight, having bought in 2022 at an average cost of $28.31, and maintained its position despite the decline. Meanwhile, activist firm Ancora Capital has built a stake in Warner Bros to oppose the merger, highlighting growing shareholder resistance.