Netflix buying back US$25 billion in stock after share decline

[LOS ANGELES] Netflix plans to buy back another US$25 billion in stock after a disappointing financial outlook sent shares of the streaming pioneer plunging.

The board endorsed the programme, which adds to a share buyback authorised in December 2024 that still had US$6.8 billion available for stock purchases, the company said in a regulatory filing on Thursday (Apr 23).

The buyback does not have an expiration date. In March, Netflix repurchased 13.5 million shares for about US$1.3 billion.

Netflix shares rose 1.3 per cent in premarket trading in New York.

The announcement comes days after Netflix reported disappointing financial results and said chairman and co-founder Reed Hastings is stepping down – sinking shares. The stock is down more than 13 per cent since the results on Apr 16.

Netflix had also walked away from a contentious battle for control of Warner Bros Discovery’s streaming and studio business in February.

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The company’s shares had suffered during the months-long tussle with Paramount Skydance as investors were concerned about the amount of debt Netflix would shoulder under a potential deal.

Paramount paid Netflix a US$2.8 billion breakup fee. BLOOMBERG