Key Moments
- Frankfurt-listed Netflix shares dropped 7% in early Wednesday trading after the latest fourth-quarter results.
- The company exceeded expectations for both fourth-quarter revenue and earnings but remains engaged in a heated contest for Warner Bros Discovery.
- Netflix plans to halt share repurchases to build cash for the proposed Warner deal, with its stock down about 20% since launching the bid in early December.
European Trading Reaction
LONDON, Jan 21 (Reuters) – Netflix shares traded in Frankfurt declined in early action on Wednesday, even though the company reported fourth-quarter revenue and earnings that surpassed expectations.
By 0714 GMT, the stock was down 7% in Frankfurt. In the prior day’s regular session, the shares had finished 0.8% lower.
Strategic Focus on Warner Bros Discovery
The market reaction came as Netflix remained in an intense bidding battle for Warner Bros Discovery, a process that has drawn significant investor attention.
Netflix informed investors that it would suspend its share buyback program in order to build up cash reserves to help finance the Warner deal.
Recent Share Performance
Since the company launched its bid for Warner Brothers in early December, Netflix’s stock has shed around 20% of its value.
Netflix Share Performance Snapshot
| Metric | Detail |
|---|---|
| Listing | Netflix shares listed in Frankfurt |
| Move in early Wednesday trade (by 0714 GMT) | -7% |
| Prior regular session close (Tuesday) | -0.8% |
| Change since early December bid for Warner Brothers | Approximately -20% in value |
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