New York, Feb 27, 2026, 05:03 EST — Premarket
- Netflix jumped roughly 7% in premarket action after opting not to increase its bid for Warner Bros Discovery.
- The company said matching the rival bid now would come at too high a price to be worthwhile.
- Deal fees are in focus, with traders also tracking regulatory scrutiny and keeping an eye out for Netflix’s next investor event.
Netflix, Inc. shares surged in premarket hours Friday, after the streamer ditched its pursuit of Warner Bros Discovery—a move that eased investor concerns about potentially steep costs. 1
Netflix shares jumped 6.97% to $90.49 in premarket trading around 5:00 a.m. EST. The stock had finished Thursday’s session at $84.59. 1
This shift is significant, putting the spotlight once again on Netflix’s capital returns and organic growth. A splashy acquisition would’ve brought its own mix of complexity and regulatory headaches—now off the table.
Netflix shares have swung sharply in recent days. That early pop points to traders re-pricing the stock, betting management won’t back down from its disciplined stance on major acquisitions.
Warner Bros on Thursday called Paramount Skydance’s sweetened $31-a-share proposal a better deal than Netflix’s $27.75 per share offer for its streaming and studio businesses, with Netflix choosing not to raise its bid. Shares of Netflix surged more than 10% following the move, according to Reuters. 2
Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement that the company has “always been disciplined,” and with the new price tag, “the deal is no longer financially attractive.” They called the transaction “nice to have”—but, as they put it, “not a ‘must have’ at any price.” The pair said Netflix is set to pour about $20 billion into films and series this year and will restart share buybacks. 3
The bigger media merger, now headed by Paramount, remains under a cloud of regulatory uncertainty. California Attorney General Rob Bonta stated the deal hasn’t “cleared regulatory scrutiny,” while his office confirmed the state Department of Justice is investigating. 4
Media analysts say politics and antitrust could drive where things go from here. “Politics are playing an outsized role in this deal,” Forrester vice president and research director Mike Proulx wrote in an email to the Associated Press. 5
Even so, that Netflix surge at the open might not stick if traders decide the company’s strategy after the deal isn’t clear enough—or if the uncertainty around Warner’s fate turns into a drawn-out battle, keeping volatility high and headlines in focus for the sector.
Netflix’s CFO Spence Neumann will field questions at Morgan Stanley’s Technology, Media & Telecom Conference on March 4, marking the next event on the company’s near-term agenda. 6
