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Netflix Shares Drop 7% in Europe After Q4 Results

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Shares of Netflix listed in Frankfurt fell sharply on Wednesday, dropping around 7% in early trading, despite the company beating expectations for fourth-quarter revenue and earnings. The decline reflects investor concern over Netflix’s capital allocation as it pursues a high-stakes acquisition.

Netflix told investors it would pause share buybacks in order to preserve cash to help fund its proposed deal for Warner Bros Discovery, where it faces competition from rival bidders. By 0714 GMT, the stock was down 7% in European trading, after closing 0.8% lower in Tuesday’s regular U.S. session.

The streaming giant’s shares have fallen roughly 20% since it launched its bid for Warner Bros Discovery earlier this year, highlighting market unease over the scale, financing and regulatory risks of the transaction. Investors appear to be weighing the long-term strategic benefits of expanding Netflix’s content library against the near-term financial strain of a costly acquisition.

While Netflix’s core business continues to show resilience, the ongoing bidding war and decision to halt buybacks have added volatility to the stock, particularly in overseas markets.

Netflix Will Now Pay All Cash for Warner Bros to Keep Paramount at Bay

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Netflix has shifted to an all-cash offer for Warner Bros Discovery’s studio and streaming assets, seeking to block rival bids from Paramount and strengthen its position in a heated consolidation battle.

The revised bid values Warner Bros at $82.7 billion, or $27.75 per share, replacing an earlier cash-and-stock proposal. The move has unanimous backing from Warner Bros’ board and is designed to provide shareholders with greater certainty amid volatility in Netflix’s own share price. Netflix co-CEO Ted Sarandos said the all-cash structure would accelerate the timeline to a shareholder vote, expected by April.

Both Netflix and Paramount have been vying for Warner Bros’ film and television studios, extensive content library, and major franchises including Game of Thrones, Harry Potter, and DC Comics characters such as Batman and Superman. Paramount, led by Skydance’s David Ellison, has pressed shareholders to reconsider its rival bid, but Warner Bros has repeatedly rejected it, arguing that Netflix’s offer delivers superior value and lower execution risk.

Market reaction was mixed, with Netflix shares edging higher while Paramount and Warner Bros shares slipped. Analysts said Netflix’s cash-only pivot raises pressure on Paramount to submit a clearly superior proposal if it hopes to stay in the race. Regulatory scrutiny remains a concern, as lawmakers have warned that further media consolidation could limit competition and raise prices for consumers.

Netflix Reportedly Exploring Bid for Warner Bros Discovery’s Studio and Streaming Assets

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Netflix is reportedly considering a major acquisition that could reshape the entertainment landscape, as the streaming giant explores a bid for Warner Bros Discovery’s studio and streaming business. According to multiple sources, Netflix has hired investment bank Moelis & Co — the same firm that advised Skydance Media in its successful Paramount Global takeover — to evaluate a potential offer.

The move comes after Warner Bros Discovery opened its financial data room to prospective bidders, giving Netflix access to detailed financial records. While both Warner Bros Discovery and Moelis declined to comment, sources say Netflix is actively assessing whether acquiring the studio arm would enhance its content portfolio.

If successful, the acquisition would give Netflix control over iconic franchises like Harry Potter and DC Comics, as well as Warner Bros’ prolific TV studio, which already produces several Netflix hits including You and Maid. The addition of HBO and its premium dramas could further strengthen Netflix’s global dominance in streaming.

Netflix CEO Ted Sarandos has previously stated that while the company typically focuses on building rather than buying, it remains open to acquisitions that expand its entertainment offerings. However, Sarandos clarified that Netflix has no interest in Warner Bros Discovery’s legacy cable networks such as CNN, TNT, or Food Network.

Warner Bros Discovery’s board is currently weighing several unsolicited offers, including one from Paramount Skydance, and is considering whether to proceed with a company split or a full sale.