Netflix (NFLX) shares surged more than 8% in after-hours trading on February 26, 2026, following the company's official announcement that it will not raise its bid to purchase Warner Bros. Discovery (WBD). The stock closed the regular session up 2.31% at $84.61 and continued its rally after the market close, reaching as high as $93.01.
WBD Purchase Update
Netflix co-CEOs Ted Sarandos and Greg Peters confirmed on Thursday that the company is walking away from the bidding war for WBD's studio and streaming assets.
- Decision to Walk Away: Netflix declined to match a "superior proposal" from Paramount Skydance (PSKY), which offered $31 per share in an all-cash deal.
- Financial Discipline: Netflix management stated that matching the higher price was no longer "financially attractive".
- Market Reaction: Wall Street responded positively to the news, as investors had been concerned about the $85 billion in debt Netflix would have incurred to finalize the deal.
- Breakup Fee: Despite exiting, Netflix is reportedly eligible for a $2.8 billion breakup fee to be paid by Paramount Skydance as part of WBD terminating its previous agreement with Netflix.
Key Stock Metrics (As of Feb 26, 2026)
- NFLX Closing Price: $84.61 (+2.31%).
- NFLX After-Hours High: $93.01 (approx. +9.9%).
- WBD Closing Price: $28.80 (-0.35%).
- PSKY After-Hours: Gained more than 1.5% following the confirmation of its superior bid status.
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