Warner Bros Discovery Inc

Pinterest's sharp decline on weak ad outlook weighs on the communication services sector, while Alphabet's bond sale and media merger activity set the stage for Tuesday's trading.

Netflix shares showed little movement Friday as reports emerged of a possible shareholder challenge to a Warner Bros Discovery partnership. Insider stock sales and fresh inflation figures added to the market backdrop.

Paramount has enhanced its $30-per-share offer for Warner Bros. Discovery by adding a ticking fee and agreeing to cover costs if WBD exits its Netflix deal. WBD's board continues to support the Netflix agreement while reviewing the new terms.

Netflix stock climbed over 3% after Paramount sweetened its offer for Warner Bros. Discovery, including covering a $2.8 billion breakup fee tied to Netflix's existing deal.

Netflix stock declined 0.9% in extended trading following Warner Bros Discovery's announcement of HBO Max's UK launch and corporate restructuring plans that could shift entertainment assets to Netflix.

Netflix stock declined over 2% after the Department of Justice issued a civil subpoena related to its proposed Warner Bros deal, raising regulatory uncertainty.

Netflix shares edged lower after hours as the Justice Department examines potential anti-competitive conduct in its $82.7 billion Warner Bros Discovery acquisition. The streamer says it is unaware of any probe beyond standard merger review.

Netflix shares closed 1.6% higher at $82.20 amid a deepening Justice Department antitrust review of its $82.7 billion Warner Bros Discovery acquisition. Director Reed Hastings reported transferring 241,944 shares via a family trust.