0851 ET - Netflix helping to drive up the cost of Warner Bros. Discovery for Paramount will increase pressure on Paramount to find synergies following the acquisition, which could help Netflix, say Oppenheimer analysts Jed Kelly and Steven Hromin. Netflix can lean into that pressure on Paramount by offering greater incentives to content creators. And while Warner's content library would have been a valuable addition, dropping out of the bidding will free up cash for Netflix to pursue global sports deals and increase share buybacks. "We see stock being revalued materially higher over the next few months," the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

February 27, 2026 08:52 ET (13:52 GMT)

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