After failed talks with Warner Bros, Netflix announces $25 billion share buyback

Netflix announced that 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 new tab assets. 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.

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.

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

Netflix is also working on extending its advertising-supported tier and is investing in live programs and sports to fuel future revenue growth. The corporation aims to spend some $20 billion on content this year. Changes in leadership are also occurring, with co-founder Reed Hastings stepping down as chairman in June.