Netflix shares jump 10% after quitting Warner Bros. Discovery bid

Netflix stock jumped nearly 10 percent on Friday as investors welcomed the company’s decision not to match Paramount Skydance’s revised $111 billion offer to acquire one of Hollywood’s most iconic studios.

The streaming major said the deal was no longer financially viable despite its earlier aggressive push to acquire Warner Bros. Discovery, which had put itself up for sale last year.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” Netflix said in a statement.

Netflix had initially offered $82.7 billion for Warner Bros. Discovery, whose assets include major film and television studios and premium streaming platforms such as HBO and HBO Max.

The proposed Paramount Skydance acquisition is poised to become one of the largest entertainment deals in history and could significantly reshape Hollywood’s media landscape.

Netflix stepped back from the deal just hours after co-CEO Ted Sarandos visited the White House on Thursday, according to media reports.

Meanwhile, California Attorney General Rob Bonta said the deal is not yet final, as both companies must clear regulatory scrutiny.

Paramount Skydance will require approvals from the U.S. Department of Justice and European regulators before completing the acquisition.