Netflix has decided not to raise its bid for Warner Bros. Discovery, effectively ending its role in the bidding contest for the studio and streaming company’s assets. The move clears the path for Paramount Skydance, whose revised all-cash offer of $31 per share the WBD board has already labeled superior.
Netflix had four business days to respond to Paramount’s improved proposal but chose to stand down. Investors welcomed the clarity. Netflix shares surged more than 10% in extended trading, while Paramount gained as much as 5%. WBD shares, however, slipped as the market digested the likely outcome.
WBD CEO David Zaslav voiced strong support for the Paramount deal, saying it would generate significant value for shareholders once finalized. Zaslav didn’t sound hesitant. He spoke as if the deal was already taking shape and made it clear he believes the merger will push the company in a stronger direction.
Media stocks reacted quickly to the update, but the broader market didn’t share the same energy. Nvidia dropped sharply and pulled the Nasdaq down with it, even after Jensen Huang argued that investors are overstating the threat AI poses to software companies.
At the same time, Indian IT firms are dealing with growing uncertainty. Executives call AI a big opening for growth, yet many analysts think companies will have to accept thinner margins as automation spreads and pricing pressure increases.
Right now, investors seem comfortable backing a clear media deal. When it comes to AI and the tech sector, though, they still look unsure about how everything will play out.
Related Readings:
Source link
#Netflix #Steps #WBD #Deal #Moves #European #Financial #Review
