Netflix Abandons Warner Bros. Deal Talks, Stock Surges

Netflix Inc. abandoned acquisition talks for Warner Bros. Discovery's studio assets in late February 2026, a decision that propelled its stock higher and refocused the company on its core streaming operations amid a competitive entertainment landscape.

The move, valued at around $83 billion in an all-cash bid, came after negotiations revealed unfavorable financial terms, including significant debt obligations and integration challenges. Netflix officials cited these risks as key factors in walking away, allowing the company to resume its share repurchase program backed by $9.5 billion in free cash flow from 2025. The announcement triggered a sharp rally, with shares gaining nearly 27 percent in the final five trading days of February and surging 15.3 percent for the month overall.

On March 13, 2026, Netflix shares closed at $95.31, up 1.06 percent from the prior day, after trading between $94.24 and $95.68 on volume of about 29.8 million shares. The stock has shown volatility in early March, fluctuating from the low $90s to near $100, reflecting investor digestion of the company's guidance and broader market pressures. Year-to-date through mid-March, shares are up modestly from...