Paramount Surges In Premarket After Winning Bidding War For Warner Bros.—Netflix Also Up

BreakingBusinessParamount Surges In Premarket After Winning Bidding War For Warner Bros.—Netflix Also UpBySiladitya Ray,Forbes Staff. Siladitya Ray is a New Delhi-based Forbes news team reporter.Follow AuthorFeb 27, 2026, 05:44am ESTFeb 27, 2026, 07:37am ESTToplineParamount Skydance’s shares surged sharply in premarket trading on Friday after it emerged as the winner of a months-long bidding war to acquire rival Warner Bros. Discovery, as Netflix stock also saw a big bump as the streamer’s investors cheered its decision to walk away and not raise its earlier $83 billion offer to acquire Warner’s studio and streaming arms.Paramount shares surged in premarket trading on Friday morning as it emerged as the winner of a months long bidding war for Warner Bros Discovery.NurPhoto via Getty ImagesKey FactsParamount Skydance’s share price surged nearly 9.5% to $12.24 early Friday, after rising more than 10% on Thursday.Netflix’s shares rose nearly 7.2% in premarket trading to $90.68 after ending Thursday with a 2.3% bump.According to Bloomberg, Netflix’s investors are relieved by the company’s decision to walk away from the bidding war, which they feared would have resulted in the streaming giant overpaying for Warner’s studio and streaming businesses.The bidding war, which Netflix was leading with its $83 billion offer, had weighed on the streaming company’s stock price, which is down more than 31% in the past six months and nearly 23% since the original deal was first announced.By walking away from the bidding war, Netflix will also receive a $2.8 billion breakup fee, which will be paid by Paramount.The bidding war has also weighed on Paramount Skydance’s stock, which is down more than $40% since the start of October.TangentWith the bidding war for its assets now over, Warner Bros Discovery’s shares were down more than 2% in early trading on Friday, slipping to $28.20. Paramount’s bid, which Warner deemed as superior to Netflix’s, offers $31 per share of the media conglomerate’s entire business—including its studios, streaming platform and TV networks. The deal values Warner Bros. Discovery at $111 billion.Crucial QuoteWhile announcing its decision not to raise its bid for Warner’s properties, Netflix touted its financial discipline and said, “the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive.” The company’s statement added: “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”What To Watch For With a Warner acquisition no longer in the pipeline, Netflix has said it plans to invest “approximately $20 billion in quality films and series and will expand our entertainment offering.” The company also announced it will resume its share buyback program. Further ReadingParamount Poised To Acquire Warner Bros.

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