Netflix boosts share buyback plan by $25 billion after failed Warner Bros bid

Netflix said on Thursday its board has authorized an additional $25 billion share repurchase program, resuming capital returns after the streaming giant walked away from a $72 billion deal to buy Warner Bros Discovery’s assets.

Its shares rose 1.5% in premarket trading.

The new authorization is on top of a buyback approved in December 2024 and has no expiration date. Netflix had about $6.8 billion remaining under its previous buyback plan as of March-end.

Netflix shares fell about 9% last year after the Warner Bros deal was announced, but have climbed about 10% since the company walked away from it in February.

In the two months since it scrapped its pursuit of Warner Bros, Netflix has rolled out a series of growth initiatives, including acquiring Ben Affleck’s AI film-tech firm InterPositive, raising subscription prices in the U.S. and launching a gaming app for kids.

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Analysts expect the company to refocus on growth areas including advertising, live programming and sports, as it looks to scale its ad-supported tier, which is seen as key for future revenue growth.

Last week, Netflix provided a tepid forecast for the second quarter and said its co-founder and Chairman Reed Hastings will exit the company in June.

The company had previously said it planned to resume share repurchases while investing about $20 billion this year in films and television.

“Netflix’s buyback provides some answers on what it plans to do following it’s WBD breakup fee collection,” Emarketer senior analyst Ross Benes said.

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“But it still doesn’t entirely show where the company will reinvest runs.”

Netflix received a $2.8 billion termination fee from Paramount Skydance, which agreed to pay it as part of its proposed $110 billion acquisition of Warner Bros Discovery.