Netflix¡¯s stock price is staging a dramatic reversal triggered by management¡¯s decision to walk away from its proposed acquisition of Warner Bros. Discovery late last month.
¡°The core business is phenomenal and they never needed that deal ¡ª it was a nice to have, not a must have,¡± Wedbush analyst Alicia Reese said. ¡°It¡¯s hard to look at this in any negative way.¡±
The streaming giant emerged as the favorite to buy Warner in early December and agreed to a $72 billion acquisition on Dec. 5 that eventually increased to $83 billion. Netflix shares immediately fell, as investors worried the deal would distract the company from its core business and that Neflix didn¡¯t need the deal for growth.
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