Why Netflix’s stock price is dropping despite Warner Bros deal news
The news broke on Friday morning that Netflix had agreed to buy Warner Bros. Discovery in a move that will cost a reported $72 billion.
There had been rumbles about the potential deal for weeks, and now this sets up for a battle of media giants to compete against Paramount, Walt Disney and more.
But why, then, is — as of publishing this — Netflix’s stock down? Shouldn’t this mean it goes up?
Here’s what we know.
This is A LOT of money to spend on Warner Bros, so perhaps investors are concerned there.
Could the United States and Europe allow this to happen, especially if it could increase prices for consumers? That’s the big question.
To ease concerns about market concentration, Netflix…
