Netflix shares surged 13.77% after the streaming giant announced it would not match Paramount Skydance's latest offer for Warner Bros Discovery. The company's co-CEOs Ted Sarandos and Greg Peters stated the deal was no longer financially attractive at the price required to compete with the rival bid.

Paramount Skydance's proposal includes a $31.00 per share cash price plus a daily ticking fee starting at $0.25 per share per quarter after September 30, 2026. The bid also carries a $7 billion regulatory termination fee and would require Netflix to pay its existing $2.8 billion breakup fee to Warner Bros Discovery if the deal falls through.

Wall Street analysts viewed Netflix's decision as a sign of confidence in its standalone business model. Wolfe Research noted that Warner Bros Discovery was more a "nice to have" than a necessity for Netflix, while Raymond James downgraded Warner Bros Discovery to Underperform, suggesting the stock would now trade as a traditional arbitrage play. Netflix emphasized its business remains "healthy, strong and growing organically" with plans to invest approximately $20 billion in content this year.