Shares of Netflix, Inc. (NASDAQ:NFLX) are soaring Friday after the company backed out of a heated tug-of-war against Paramount Sky-Dance for Warner Bros. Discovery.

• Netflix stock is surging to new heights today. What’s fueling NFLX momentum?

Netflix Declines To Match Paramount Skydance Bid

Netflix, which had previously received notice from Warner Bros. Discovery labelling Paramount Skydance’s latest offer as a “Superior Proposal,” decided not to match the offer. Co-CEOs Ted Sarandos and Greg Peters stated that while the proposed transaction with Netflix would have created shareholder value with a clear path to regulatory approval, they believe the price required to match Paramount’s latest offer makes the deal financially unattractive.

The ongoing battle for Warner Bros. Discovery has seen major players like Netflix and Paramount increase their offers over the past few months, becoming especially heated when Paramount raised its bid to $31 per share.

This year, Netflix said that it will invest approximately $20 billion in “quality films and series” and will expand its entertaining offering. Consistent with the company’s capital allocation policy, it will also resume its share repurchase program.

Shares Soar 10% In Regular Trading

NFLX Price Action: Netflix shares were up 11.86% at $94.62 at the time of publication on Friday, according to Benzinga Pro data.

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