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$Netflix(NFLX)$ is a winner by walking away from
$Warner Bros. Discovery(WBD)$ deal & its investors are celebrating. While
$Paramount Skydance Corp(PSKY)$ walks away with the prize & USD 50 Billion in debt that comes with it, Netflix has staged a spectacular 13.7% jump to USD 96.24.
Why is Market Cheering Netflix's Exit?
Risk Removal =Massive Upside. Netflix avoids a massive debt mountain & regulatory nightmare. It also collects USD2.8 billion break up fee - enough to fund about 30 major films.
It is also a sentiment driven rally. Netflix hit a 52 week low of USD 75.23 due to deal fatigue. The market is rewarding Netflix for choosing financial discipline over empire building.
While Netflix has risen, Bulls are looking forward to April 16 earnings report. Analysts expect a 15% jump in EPS to USD 0.76. Ad Tier revenue may also double as projected.
By ditching WBD, Netflix can now focus on what it does best: Global hits & AI content personalisation.
@Tiger_comments
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