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Netflix Boosts Share Buyback Plan by $25 Billion After Failed Warner Bros Bid
The program adds to a December 2024 authorization as Netflix uses a $2.8 billion termination fee and elevated cash to support shareholder returns.
- On Thursday, Netflix disclosed in an SEC filing that its board authorized an additional $25 billion common stock repurchase program, resuming capital returns after abandoning its $72 billion attempt to acquire Warner Bros. Discovery assets.
- The streaming giant walked away from the $72 billion deal earlier this year, and Paramount Skydance subsequently paid Netflix a $2.8 billion breakup fee, providing liquidity to bolster shareholder returns.
- Combining the new authorization with the $6.8 billion remaining from a December 2024 program, the total potential buyback could reach $32 billion, representing approximately 8% of Netflix's total market capitalization.
- Netflix shares rose 1.33% in premarket trading following the announcement, while Emarketer senior analyst Ross Benes noted the buyback "provides some answers" regarding post-breakup capital allocation.
- Despite the upcoming June departure of co-founder and Chairman Reed Hastings, the company plans to invest about $20 billion in films and television this year, maintaining its focus on organic growth.
27 Articles
27 Articles
Netflix reported this Thursday that it has authorized an additional share buyback program worth $25 billion following the failure of agreement for the acquisition of Warner Bros. Discovery (WBD).The entertainment giant reaffirmed his commitment to purchase in a report published to the United States Stock Exchange and Securities Commission (SEC), detailing that the acquisition of these shares will be executed without being subject to a fixed expi…
Netflix Is Investing In Itself - Expands Stock Buyback - Netflix (NASDAQ:NFLX)
Netflix, Inc. (NASDAQ:NFLX) shares rose in premarket trading on Thursday after the company expanded its stock buyback plan and reinforced its growth outlook. According to an exchange filing, the streaming giant approved a fresh $25 billion repurchase authorization, adding to an earlier program announced in December 2024. The combined plan carries no expiration date and offers flexibility in execution. Share Repurchase Strategy Expands The board …
Netflix boosts share buyback plan by $25 billion
Netflix said today that its board has authorised an additional $25 billion share repurchase programme, resuming capital returns after the streaming giant walked away from a $72 billion deal to buy Warner Bros Discovery's assets.
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