Warner Bros. Falls Below Netflix Offer as Bidding War Hopes Cool

Traders are betting that what once looked like a potential bidding war for Warner Bros. Discovery Inc. is turning into a one horse race, with Netflix Inc. winning out over Paramount Skydance Corp.

Shares of Warner Bros. fell 2.1% Thursday to close at $27.61, below the $27.75 a share offer in cash and stock that Netflix agreed to pay for the firm’s studios, streaming and HBO businesses. The move lower comes after Warner Bros. advised its shareholders to reject Paramount’s all-cash bid of $30 a share for the entire company, including its cable networks, like CNN and TNT.

The stock ...