Netflix (NFLX) Soars 13.7% After Dropping Warner Bros Bid

We recently published 10 Stocks Ending February With a Bang. Netflix Inc. (NASDAQ:NFLX) was one of the best performers on Friday.

Netflix extended its winning streak to a fourth consecutive day on Friday, surging 13.75 percent to close at $96.24 apiece after dropping its offer to acquire Warner Bros Discovery Inc. following months of a bidding war with Paramount Skydance.

In a statement, Netflix Inc. (NASDAQ:NFLX) said that it has declined to raise its offer to acquire Warner Bros after earlier receiving a notice that the latter’s board determined Paramount Skydance’s proposal to be superior.

“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,” it said.

“Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the US.  But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” it noted.

Netflix Inc. (NASDAQ:NFLX) earlier proposed to buy Warner Bros’ shares at $27.75 apiece, but Paramount Skydance topped the offer to $31 per share.

Looking ahead, Netflix Inc. (NASDAQ:NFLX) said that it would instead invest $20 billion in quality films and expand its entertainment offering.

Netflix (NFLX) Soars 13.7% After Dropping Warner Bros Bid

“Consistent with our capital allocation policy, we’ll also resume our share repurchase program. We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.”

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