Netflix Slips After Walking Away from $82.7B WBD Deal and Losing $22B Roku Bid
NFLX•Netflix shares slipped nearly 2%, extending a 10.5% drawdown this month as the streaming company walked away from an $82.7B Warner Bros. Discovery buyout and failed in a $22B bid for Roku. Despite M&A setbacks, Q1 revenue rose 16% to $12.25B and GAAP EPS hit $1.23.
1. M&A Setbacks
Netflix abandoned an $82.7B acquisition of Warner Bros. Discovery’s studios and streaming assets after Paramount Skydance’s higher counteroffer made the deal financially unattractive, securing a $2.8B termination fee. The company then lost a $22B bidding war for Roku to Fox Corporation, halting its planned expansion into live TV hardware.
2. Stock Performance
Shares fell nearly 2% on Wednesday, extending a monthly decline to 10.5% and marking the fourth straight month in the red as investor confidence wavered following the failed takeover attempts. The stock’s persistent losses reflect growing skepticism about Netflix’s strategic direction.
3. Strong Q1 Results and Outlook
Netflix reported first-quarter revenue up 16% year-over-year to $12.25B and GAAP diluted EPS of $1.23, well above guidance. The company maintained its full-year 2026 revenue forecast of $50.7B–$51.7B and an operating margin target of 31.5%, with Q2 earnings scheduled for July 16.
