Netflix Lost. Netflix Won. Film at 11.
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By Anders Bylund – Feb 27, 2026 at 12:43PM ESTKey PointsNetflix declined to match Paramount Skydance's $31-per-share bid for Warner Bros. Discovery.Instead of buying a studio, Netflix will invest $20 billion in content production this year.Netflix's stock buyback program is back in action after being paused during the bidding war.Netflix (NFLX +12.63%) has officially ended its bid to acquire the studio and streaming operations of Warner Bros. Discovery (WBD 2.17%). The target company had a week to think about a raised bid from Paramount Skydance (PSKY +23.43%), and came back leaning toward a Paramount deal in half that time. Pending regulatory approval, it's a done deal. Netflix shares opened Friday's trading 11.6% higher on the news. Warner Bros. stock fell by roughly 2% and Paramount soared more than 18% higher. Combined, the three stocks added approximately $40 billion of market value today. ExpandNASDAQ: NFLXNetflixToday's Change(12.63%) $10.68Current Price$95.27Key Data PointsMarket Cap$357BDay's Range$90.58 - $95.7952wk Range$75.01 - $134.12Volume5MAvg Vol48MGross Margin48.59% Netflix dodges a $40 billion debt bomb Was this the best outcome for Netflix? Maybe not from an industry domination perspective, but it certainly puts Netflix in a less stressful financial situation. Netflix had $9.0 billion of cash and $13.5 billion in long-term debt at the end of 2025. To finance its all-cash buyout bid, the company would have needed more than $40 billion of additional debt. Instead, it walks away with a $2.8 billion deal breakup fee, to be paid by Paramount. As exciting as a mega-studio combining Warner Bros. and Netflix might have been, a clean balance sheet (with an extra $2.8 billion) could be the ideal outcome for Netflix and its shareholders. Image source: Netflix. What Netflix will do with all that cash And the cash is going to work right away. Netflix's management promised to invest $20 billion in content production this year, up from a prior 2026 production commitment of $11.5 billion. The stock buyback program is also back in action, having been paused to conserve cash for the Warner Bros. deal. The resumed buybacks strike me as a smartly opportunistic move. Netflix's stock posted a drawdown of 43% from last summer's peak, mostly due to concerns about the expensive buyout battle. Canceling shares at a deep discount should be a shareholder-friendly idea and a good use of spare cash. Netflix stock looks like a deep-discount deal at this point, even after Friday's jump.Read NextFeb 27, 2026 •By Anders BylundCan Netflix Stock Beat the Market?Feb 27, 2026 •By Patrick SandersNetflix Drops Warner Bros Bid, Shares Rally as Paramount Emerges VictoriousFeb 26, 2026 •By Prosper Junior Bakiny2 Stock-Split Stocks to Buy and Hold for the Next 10 YearsFeb 26, 2026 •By Neil PatelNetflix's Ad Revenue Is Expected to Surge 100% to $3 Billion: Is This the Best Stock to Buy Today With $1,000?Feb 25, 2026 •By Danny Vena, CPAParamount Skydance's Higher Bid for Warner Bros.
Has Netflix Shareholders Cheering. Here's Why.Feb 25, 2026 •By Bram BerkowitzParamount Skydance Just Raised its Bid for Warner Bros. -- Is the Netflix Deal Dead?About the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedNetflixNASDAQ: NFLX$95.08(+12.40%)+$10.49Warner Bros. DiscoveryNASDAQ: WBD$28.25(-1.91%)-$0.55Paramount SkydanceNASDAQ: PSKY$13.74(+22.90%)+$2.56*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.