Reed Hastings, the co-founder of Netflix, has announced his departure from the company he established nearly three decades ago. Following this news, Netflix shares experienced a decline of approximately 9%.
In a letter to investors, Netflix confirmed that Hastings will not seek re-election at the annual meeting scheduled for June and intends to focus on philanthropy and other interests.
Hastings has been instrumental in transforming Netflix from a DVD rental service into a leading global streaming platform, significantly altering the landscape of film and television distribution. He guided the company through various challenges, including the recent pandemic.
“My true contribution to Netflix was not in any one decision, but rather in building a company that others could inherit and improve,” Hastings stated following his announcement.
As of the end of last year, Netflix’s co-CEO Greg Peters reported that the company boasted over 325 million subscribers and reached an audience of approximately one billion people worldwide.
On December 5, 2025, Netflix announced a deal to acquire Warner Bros. Discovery, which includes the film and television studios HBO Max and HBO, for $82.7 billion.
Under the terms of the agreement, each Warner Bros. Discovery shareholder is set to receive $23.25 in cash and $4.50 in Netflix shares for each share of Warner Bros. Discovery outstanding at the time of the deal’s closure. The transaction is anticipated to be completed in the third quarter of 2026.
On December 8, Paramount Skydance announced its intention to acquire Warner Bros. Discovery for $108.4 billion, offering $30 per share for Warner Bros. Discovery shares.
However, Warner Bros. expressed concerns regarding the financing sources for this proposal, indicating that the company could be left without legal recourse should the financing be withdrawn.
The situation was further complicated by the withdrawal of a key partner for Paramount, Affinity Partners. Additionally, Warner Bros.’ board raised doubts about the company’s ability to operate for a year or more, which could be necessary to secure regulatory approval for the sale.
On January 8, Warner Bros. officially rejected Paramount Skydance’s acquisition proposal, deeming it “inadequate” and excessively risky for shareholders, and decided to proceed with the initial agreement with Netflix. In response, Paramount has filed a lawsuit to unveil details of the Netflix deal.
Reed Hastings has announced his exit from Netflix, leading to a significant drop in the company's stock. As Netflix pursues its acquisition of Warner Bros. Discovery, the landscape of media mergers continues to evolve amid competing offers and regulatory scrutiny.