Netflix shares fell 3.37% to a 15-month low of $76.02 after Paramount Global submitted a rival $108.4 billion bid to acquire Warner Bros. Discovery. This competing offer disrupts Netflix’s previously recommended $82.7 billion all-cash deal, forcing a new negotiation window.
- The U.S. Justice Department has launched an investigation into Netflix for potential monopolistic behavior regarding its dealings with filmmakers.
- While Warner’s board previously favored Netflix, the higher Paramount bid has introduced significant regulatory uncertainty and a potential bidding war.
- Investors remain wary of the high costs associated with the merger and the impact of increased federal scrutiny on the company's growth.