Netflix (NASDAQ:NFLX) shares listed in Frankfurt plunged 7% in early Wednesday trading, as the market reacted negatively to the company’s decision to suspend share buybacks and pivot to a riskier all-cash bid for Warner Bros. Discovery.
While Netflix reported strong fourth-quarter results on Tuesday—surpassing 325 million subscribers and beating revenue estimates with $12.1 billion—investors are growing increasingly wary of the financial strain from its $82.7 billion pursuit of Warner Bros. Discovery (NYSE:WBD).
To preserve capital for the massive acquisition, Netflix announced it will pause its share buyback program, removing a key source of support for the stock price.
Since first launching its bid for the legendary Hollywood studio in early December 2025, Netflix’s market value has eroded by approximately 20%.
The selloff in Europe follows a similar late-session dip in the U.S., where the stock fell more than 4% in extended trading.
The primary concern for Wall Street is the "cash-heavy" nature of the amended bid.
By switching from a cash-and-stock proposal to a straight $27.75-per-share cash offer, Netflix is attempting to block a $108.4 billion hostile takeover attempt from Paramount Skydance.
While the all-cash move provides WBD shareholders with more certainty and could expedite a vote by April 2026, it leaves Netflix with a projected debt load of roughly $85 billion, a leverage level that has some analysts sounding the alarm despite the company's investment-grade credit rating.