Overview
- Shares are up roughly 17% over the past month after Netflix withdrew from the Warner Bros. Discovery bidding process.
- Citi resumed coverage with a Buy rating and a $115 price target, suggesting about 25% upside from Thursday’s close.
- Under the deal terms, Netflix is set to receive a $2.8 billion termination fee from Warner and Paramount.
- Wall Street forecasts about $11.4 billion in free cash flow for 2026, and analysts say the cash position could support buybacks or new growth investments.
- Paramount Skydance won the Warner bid as its stock fell about 16% with plans for roughly $41 billion in new equity and $54 billion in additional debt.