April 23 (Reuters) - Netflix said on Thursday its board has authorized an additional $25 billion share repurchase program, resuming capital returns after the streaming giant walked away from a $72 billion deal to buy Warner Bros Discovery's assets.
Its shares rose 1.5% in premarket trading.
The new authorization is on top of a buyback approved in December 2024 and has no expiration date. Netflix had about $6.8 billion remaining under its previous buyback plan as of March end.
In the two months since it walked away from the Warner Bros merger race, Netflix has rolled out a series of growth initiatives, including the acquisition of Ben Affleck's AI film-tech firm InterPositive, raised subscription prices in the U.S. and launched a gaming app for kids.
Analysts expect the company to refocus on growth areas including advertising, live programming and sports, as it looks to scale its ad-supported tier, which is seen as key for future revenue growth.
Last week, Netflix provided a tepid forecast for the second quarter and said its co-founder and Chairman Reed Hastings will exit the company in June.
The company had previously said it planned to resume share repurchases while investing about $20 billion this year in films and television.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Tasim Zahid
Source: Reuters