Netflix climbs as it pulls out of Warner Bros bidding war

Netflix NFLX.O surges over 9% premarket after bowing out of bidding war for Warner Bros Discovery WBD.O

Paramount-Skydance PSKY.O jumps about 10% as it emerges winner for the storied Hollywood studio, while WBD down 2.05%

NFLX on Thursday declined to raise its bid for the storied Hollywood studio

WBD board will still have to terminate that deal and take up PSKY's revised offer

"This was absolutely the right move for Netflix, in our view, we estimated it was overpaying for Warner's streaming and studios when it had no need to, given its extraordinarily strong business," Brokerage Morningstar says

By moving on so quickly and avoiding further uncertainty for the co, reflected in the recent stock price, NFLX is signaling confidence in the underlying strength of its core business and the fact that this opportunity was much more offensive than defensive in nature - MoffettNathanson

47 analysts rate NFLX "buy" on average; their median PT is $115, according to data compiled by LSEG