Netflix Stock Jumps 8.5% After Declining to Top Paramount’s $31 Bid
Netflix opted not to top Paramount Skydance’s $31 per share proposal for Warner Bros, deeming the higher price financially unattractive. Shares jumped 8.46% in after-hours trading as Senator Elizabeth Warren accused the White House of crony capitalism to favor the Ellison family.
1. Netflix Declines to Match Paramount Offer
Netflix co-CEOs Ted Sarandos and Greg Peters announced they would not raise their initial $27.75 per share bid for Warner Bros, stating that matching Paramount Skydance’s $31 proposal was no longer financially attractive and not essential to Netflix’s strategic roadmap.
2. Paramount Skydance’s Superior Proposal
Paramount Skydance sweetened its offer to $31 per share, added a $7 billion regulatory termination fee and a quarterly ticking fee of about $650 million starting after September, leading Warner Bros Discovery’s board to unanimously designate it as the superior proposal.
3. Market Reaction
Netflix shares jumped 8.46% in after-hours trading following the announcement, reflecting investor relief over avoided overpayment and enthusiasm for the company’s focus on core streaming operations without large acquisition debt.
4. Political and Antitrust Concerns
Senator Elizabeth Warren publicly questioned potential White House involvement in favoring the Ellison family, citing a meeting between administration officials and Netflix leadership and warning of crony capitalism and antitrust risks in the media consolidation battle.