NEW YORK, January 3, 2026, 04:58 ET — Market closed
Netflix shares fell 2.97% to close at $90.99 on Friday, extending a pullback that traders have tied to uncertainty around the company’s planned acquisition of Warner Bros. Discovery’s studio and streaming assets. The stock traded between $90.83 and $94.50 and finished the day with about 41 million shares changing hands.
The move matters now because Netflix is heading into a dense January catalyst stretch with its biggest strategic bet in years still under scrutiny. Investors are weighing whether the deal will add scale and content strength — or raise regulatory and execution risks that cap near-term upside.
Broader U.S. stocks were mixed in the first session of the year, with the Dow up 0.66% and the S&P 500 up 0.19%, while the Nasdaq slipped 0.03%, Reuters reported. Joe Mazzola, head of trading & derivatives strategist at Charles Schwab, described the mood as a “buy the dip, sell the rip” mentality — shorthand for buying after selloffs and taking profits quickly on rebounds. 1
On the deal front, Warner Bros. Discovery’s board is poised to reject Paramount Skydance’s amended takeover offer and stick with its agreement with Netflix, Variety reported this week. Paramount’s backers added an “irrevocable personal guarantee” of $40.4 billion from Larry Ellison, Variety reported, as the rival bidder pursues a tender offer — a bid made directly to shareholders — for Warner. 2
Netflix and Warner said on Dec. 5 they signed a definitive agreement under which Netflix would acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a cash-and-stock transaction that values Warner at $27.75 per share and about $82.7 billion in total enterprise value. The companies said the deal is expected to close after Warner completes a planned separation of its Global Networks business, now targeted for the third quarter of 2026, and is expected to take 12 to 18 months, subject to shareholder and regulatory approvals. 3
Netflix has also tried to reassure investors and the film industry that it would not shift Warner’s movie strategy toward an all-streaming model. In a Dec. 17 statement, Netflix said it remained committed to releasing Warner Bros. films in theaters with a traditional window. 4
Away from M&A headlines, Netflix has been leaning harder into live events, a push investors have watched closely for its advertising and retention potential. Nielsen-measured data showed the NFL averaged 22.9 million U.S. viewers across three games on Christmas Day, led by Lions-Vikings on Netflix with 27.5 million viewers, Sports Business Journal reported. 5
The same report said Amazon’s Prime Video drew 21.1 million viewers for Broncos-Chiefs in prime time, marking a platform record for its “Thursday Night Football” package. 5
Next up is Netflix’s fourth-quarter report on Jan. 20. Netflix said it will post results and its business outlook at about 1:01 p.m. Pacific time and follow with a live video interview featuring co-CEOs Ted Sarandos and Greg Peters and other executives, with questions submitted by sell-side analysts. 6
Before the earnings print, investors will be watching whether macro data shift interest-rate expectations — a key driver for valuation-sensitive growth stocks. The U.S. Employment Situation report for December 2025 is scheduled for Jan. 9, followed by the Consumer Price Index for December 2025 on Jan. 13, according to the Bureau of Labor Statistics calendar. 7
Before next session, deal headlines remain the swing factor for sentiment, with investors parsing whether the Warner process stabilizes around Netflix’s agreement or reopens a higher-stakes bidding battle. Any sign of extended timelines or tougher antitrust scrutiny would likely keep risk premiums elevated.
