The New York Times:

Netflix said on Thursday that it had backed away from its deal to acquire Warner Bros. Discovery, a stunning development that paves the way for the storied Hollywood media giant to end up under the control of a rival bidder, the technology heir David Ellison.

Netflix said that it would not raise its offer to counter a higher bid made earlier this week by Mr. Ellison’s company, Paramount Skydance, adding in a statement that “the deal is no longer financially attractive.”

“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix co-chief executives, Ted Sarandos and Greg Peters, said in a statement.

Netflix’s stock is up 9 percent in after-hours trading. This is like when you have a friend (Netflix) dating a good-looking-but-crazy person (Warner Bros.), and the good-looking-but-crazy person does something to give your friend second thoughts. You tell your friend to run away.