Netflix Stock Rebounds as Streamer Walks Away From WBD Deal $2.8 Billion Richer
February 27, 2026
Netflix shares soared almost 10% after the streamer dropped its $82.7 billion bid for Warner Bros. Discovery’s streaming and studio assets, alleviating investor concerns and boosting the service’s market confidence.
The stock is still down 7% from the streamer’s $100.3-per-share price on Dec. 5, 2025, when WBD announced it had accepted a deal with Netflix.
Netflix Feb. 26 announced it would not counter Paramount Skydance’s revised $110.9 billion offer for the entire WBD, including its television networks, which WBD’s board deemed a superior offer to Netflix’s deal.
With WBD formally accepting Paramount’s bid, Netflix will receive a $2.8 billion termination fee from WBD — paid for by Paramount as part of the latter’s more than $11 billion promised termination and penalty fees should it offer fail to close.
With the deal officially accepted, the clock begins ticking for Paramount, which has until Sept. 30 to close the transaction or risk paying WBD another $650 million for every 90-days the deal doesn’t close.
Currently analysts believe Paramount will have few difficulties passing regulatory approval in the United States. Doing the same abroad could be a challenge. The deal still faces significant scrutiny from overseas regulators, primarily in the European Union and the United Kingdom.
The EC is reportedly expected to conduct a rigorous review focusing on market implications across the region. Analysts note that while the EC rarely blocks media mergers outright, it may impose “light-touch remedies,” such as small divestitures or commitments to local content production.
California attorney general Rob Bonta also promised a vigorous review of the transaction at the state level, and could sue to stop it in federal court if found to be problematic.
The Center for Journalism and Liberty at Open Markets Feb. 27 released a statement urging regulators and lawmakers to reject Paramount’s bid.
“U.S. regulators and Congress should strongly oppose any attempt by Paramount to acquire Warner Bros. Discovery,” Dr. Courtney Radsch, director of of the organization, said in a statement. “As we have made clear in response to other potential bidders — including Netflix — further consolidation of this industry would deepen already dangerous concentrations of power over film, television, news and information.”
Radsch cited media reports that Netflix co-CEO Ted Sarandos abandoned the deal after a direct meeting with President Trump — underscoring an unprecedented level of politically motivated involvement in media consolidation as Trump seeks to defang major news networks such as Warner Bros.-owned CNN, according to Radshh.
“This is not normal market behavior,” she says. “It raises serious concerns about whether decisions shaping the nation’s information infrastructure are being influenced by political pressure rather than law, fair competition or the public good.”
Regardless, Paramount has already received pending German regulatory approval on Jan. 26. The U.K. competition and markets authority is also expected to weigh in separately on possible antitrust concerns.
Paramount’s stock rose 18% in value, while WBD’s stock fell 2%.
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