New York, Feb 26, 2026, 18:06 (ET) — Trading after the bell.
- Netflix ended up 2.3% by the close, tacking on another 0.8% after hours.
- Netflix won’t increase its bid for Warner Bros Discovery, stepping aside after a competitor’s offer topped theirs.
- Attention turns to Warner’s upcoming moves, while Netflix decides what to do with its cash—buybacks are on the table.
Netflix Inc climbed 2.3% to finish at $84.59 Thursday, then added another 0.8% in late trading, extending Wednesday’s nearly 6% surge. The streaming giant stated it won’t hike its bid for Warner Bros Discovery, following the media group’s board labeling Paramount Skydance’s updated offer a “Superior Proposal.” Investing.com
This call is significant for investors, who’ve viewed the Warner pursuit as a test of Netflix’s appetite for deals — and of its willingness to spend big on an old-guard Hollywood brand. By stepping back, Netflix is sticking to familiar tactics: funnel money into content, leverage its size, and send cash back to shareholders when possible.
“Superior Proposal” — that’s how merger lawyers describe a new offer the target company deems more attractive than the existing agreement. When that happens, the initial buyer usually gets a brief period to respond. For investors, that countdown has become the clock on what may shape up as one of the largest media mergers in recent memory.
Co-CEOs Ted Sarandos and Greg Peters called off the deal, saying in a statement it just wasn’t “financially attractive” anymore at the required price to keep up with Paramount. Netflix is sticking with its $20 billion spending plan for films and series this year and will restart its share buybacks—meaning the company will be purchasing its own stock again. Netflix
Earlier, Warner called Paramount Skydance’s sweetened $31-a-share bid—now with more equity and extra debt financing—the better deal compared to Netflix’s existing pact, setting off a four-day window for Netflix to respond. Netflix, back in December, agreed to buy Warner’s streaming and studio units for $27.75 a share, as Warner aimed to spin off its cable networks and list them separately as Discovery Global. “The bigger question,” said eMarketer’s Ross Benes, is whether Netflix actually wants to keep chasing this. PP Foresight’s Paolo Pescatore, for his part, labeled the board’s move “a leverage play.” Reuters
Warner’s latest numbers have complicated the valuation story. Fourth-quarter revenue from its TV networks slid 12%, and adjusted income fell 27%, putting pressure on how much the cable assets inside Discovery Global might fetch on their own. Needham analyst Laura Martin called out that, for Warner shareholders, the “best thing” is simply that the company is being sold. Reuters
Netflix shares did better than the broader U.S. market on Thursday. The S&P 500 slipped 0.54%, and the Dow eked out a 0.03% gain.
Netflix’s outright “no” might not close the book just yet. With Warner still weighing its options, investors remain exposed to headline risk. Should Warner end up with Paramount, the shake-up could ripple through content and sports rights markets, regardless of Netflix’s solo stance.
At this point, traders are eyeing Warner’s next move when the match window ends, especially to see if filings emerge that would dissolve the Netflix agreement. Warner’s shareholder vote on the Netflix deal is penciled in for March 20—any tweaks to that date could steer sentiment on NFLX for the following session and the week.
