New York, February 28, 2026, 10:02 a.m. EST — Market closed.
- Netflix jumped almost 14% on Friday, pocketing a $2.8 billion breakup fee after stepping away from its Warner Bros. Discovery agreement.
- Investors saw the exit as a reset for both leverage and deal risk, as Paramount pressed forward with its $110 billion Warner agreement.
- Next, traders are eyeing Monday for signs of momentum and waiting to hear what management says about capital returns and spending plans.
Netflix finished Friday at $96.24, jumping 13.77% after the company withdrew from the drawn-out fight over Warner Bros. Discovery assets. U.S. markets are quiet for the weekend, so traders are watching to see if those gains stick when things open back up on Monday. nasdaq.com
Netflix shares had been under pressure ever since the company signed its Warner deal in early December, with investors uneasy about its debt load and possible distractions. Ben Barringer, who leads technology research at Quilter Cheviot, described the latest step as “a tick in the box” when it comes to discipline. Reuters
Paramount Skydance has struck a $110 billion agreement to acquire Warner Bros Discovery, a move that hands Netflix a cash payout but no integration headaches. Netflix shares slipped roughly 1% in after-hours action following the announcement—a quick swing in sentiment. Reuters
Netflix isn’t budging on its offer, the company said Thursday. Co-CEOs Ted Sarandos and Greg Peters stated the price to acquire Paramount “no longer financially attractive.” Netflix
A breakup fee hits when a deal falls apart. According to a regulatory filing, Netflix received the $2.8 billion termination payment from Paramount, acting for Warner Bros, after the deal was scrapped. All related financing commitments ended automatically. SEC
Netflix preserves its balance sheet agility, as Paramount steps into the heavy lifting of regulatory hurdles and integration headaches that come with a blockbuster merger. The move doesn’t just affect the two of them—it shifts the ground for competitors as well. Streaming, after all, is measured in scale and powerhouse franchises, and investors keep Disney and Amazon in their sights as benchmarks. Reuters
Netflix traders have a clear setup in front of them. Following Friday’s sharp move, attention turns to Monday’s open—either momentum stalls out or new money jumps in, hunting that “no deal” trade.
Investors are also zeroed in on how Netflix plans to deploy the cash. That breakup fee isn’t a steady source of income—just a single shot—so the Street’s watching to see if it gets funneled into share buybacks, poured into new content, or just left idle as extra cushion.
Risks are in play. Should market sentiment shift away from risk, or if Netflix’s subscriber and ad numbers miss expectations later this year, that deal-fueled surge in the stock could quickly reverse.
Up next: March 4, when Netflix CFO Spencer Neumann takes questions at the Morgan Stanley Technology, Media & Telecom Conference. Details are up on ir.netflix.net.
