Netflix’s stock price is staging a dramatic reversal triggered by management’s decision to walk away from its proposed acquisition of Warner Bros. Discovery late last month.
“The core business is phenomenal and they never needed that deal — it was a nice to have, not a must have,” Wedbush analyst Alicia Reese said. “It’s hard to look at this in any negative way.”
The streaming giant emerged as the favorite to buy Warner in early December and agreed to a $72 billion acquisition on Dec. 5 that eventually increased to $83 billion. Netflix shares immediately fell, as investors worried the deal would distract the company from its core business and that Neflix didn’t need the deal for growth.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.