Netflix recently set its sights on a new financial objective, authorizing a buyback of $25 billion in stock to boost the share price. This comes after the streaming giant bowed out of the tense, competitive bidding war to acquire some of Warner Bros. Discovery‘s assets earlier this year. The streaming giant’s exit paved the way for rival company Paramount Skydance to proceed with its own merger talks.
An SEC filing shared on Thursday confirmed that Netflix’s board of directors authorized the repurchase of an additional $25 billion of its stock. This follows the buyback program initiated in December 2024. Notably, both of these have no set expiration date.
The objective of the buyback is to return cash to shareholders and also boost the share price. Netflix’s share price suffered a decline when the company made an approximately $83 billion deal with Warner Bros. Discovery to acquire its assets.
By March 31, 2026, Netflix had roughly $6.8 billion available for repurchase under the December 2024 share repurchase authorization.
In the filing, the company revealed that its repurchases would be affected in various ways. These include the “open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate.”
Moreover, Netflix clarified that they weren’t obligated to repurchase a certain number of shares. Furthermore, they stressed that various factors determined the “timing and actual number of shares repurchased.” Some of these are:
- Stock price
- General economic, business, and market conditions
- Alternative investment opportunities
Netflix also made it clear that it could discontinue repurchases without notice at any time.
Earlier this year, the company confirmed in a statement its plans to resume its repurchase program. Netflix also stated its objective to invest roughly $20 billion in “quality films and series,” while growing their streaming service’s entertainment offerings.
Since departing the Warner Bros. Discovery bidding war, Netflix has placed its focus on several growth opportunities. Last month, the company acquired Ben Affleck‘s AI-powered filmmaking technology firm, InterPositive. Additionally, earlier this month, it launched Netflix Playground, a gaming app designed for children.
