MHh
03-01 14:56
I would say b. Market is just relieved that Netflix decided to walk away from a risky deal that might not pay off. However, fundamentally the company remains the same, with the same challenges. It has always been about subscriptions and whether it can generate other streams of revenue such as from advertisements. The real report card is still earnings and expected performance in the coming quarters. Investors want to know this as income is undeniably vital for any company to stay afloat. This has not been addressed and so Netflix is not in a strong position to acquire Warner bro and this talk about acquisition is nothing but a distraction that has spooked fears in investors. Netflix still needs to address the crux of the issue which will shed light on its viability. @HelenJanet @Wayneqq @Universe宇宙 @Fenger1188 @LuckyPiggie @SPOT_ON @DiAngel @Kaixiang @Success88 @SR050321 come join
Netflix +13%: $2.8B Breakup Win for Further Rally?
Netflix surged 13% after walking away from a bidding war and restarting share buybacks. By refusing to raise its offer for Warner assets, the company avoids higher leverage, regulatory drag, and integration risk — while potentially pocketing a $2.8B breakup fee, more than last quarter’s net profit. During deal uncertainty, NFLX had fallen roughly 20%, reflecting merger-risk discounts. With that overhang lifted, valuation compression begins to unwind. Is this just phase one of a 15–25% valuation recovery? Or has the market already priced in the breakup premium and buyback boost?
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