Netflix shares surged over 9% after the company withdrew from the bidding war with Paramount Skydance for Warner Bros Discovery’s studio and streaming assets.

Netflix declined to match Paramount’s $31-per-share offer, maintaining its previous $27.75 bid, citing the deal as “no longer financially attractive.”

Investors welcomed the decision, seeing it as a disciplined move that allows Netflix to refocus on its core business rather than pursue costly acquisitions.

Paramount, led by David Ellison and backed by Larry Ellison, remains in the running, aiming to combine Warner Bros content with its own streaming platforms to better compete with Netflix, Disney, and Amazon, USA Today has reported.

Analysts note that Paramount now faces pressure to justify its $45.7 billion financing plan and $7 billion termination fee to make the deal worthwhile.