Warner Bros Discovery Shares Slip 1.9% to $28.26 After Netflix Exits Bid
Netflix declined to match Paramount Skydance’s superior proposal for Warner Bros Discovery, triggering a $2.8 billion breakup fee payable by Paramount. WBD shares fell 1.9% to $28.26, dipping below year-to-date breakeven for a third straight session and drawing a Raymond James downgrade.
1. Bidding War Conclusion
Netflix announced it will not match Paramount Skydance’s latest superior proposal for Warner Bros Discovery, triggering a $2.8 billion breakup fee payable by Paramount under the merger agreement.
2. Stock Price Reaction
Warner Bros Discovery shares fell 1.9% to $28.26, falling below year-to-date breakeven levels for a third consecutive session after a 0.3% post-earnings pullback the previous day.
3. Broker Downgrade and Options Activity
Raymond James downgraded Warner Bros Discovery to underperform following the bidding outcome, while WBD options volume doubled its average with 18,000 calls and 23,000 puts traded and implied volatility at 25%.