New York, Jan 12, 2026, 10:20 EST — Regular session
- Netflix shares edged up around 0.7% after Paramount Skydance intensified its push against Netflix’s Warner agreement.
- Paramount filed suit demanding greater disclosure and hinted at a proxy battle, while its cash offer is scheduled to expire on Jan. 21 unless extended.
- Ahead of Netflix’s Jan. 20 quarterly report, HSBC kicked off coverage with a Buy rating.
Netflix shares ticked up Monday, even as Paramount Skydance ramped up its opposition to Netflix’s bid for major Warner Bros. Discovery assets, injecting fresh doubt into the deal’s outlook.
The clash comes right before Netflix’s quarterly earnings next week, with investors eager for updates on the company’s outlook and the ripple effects from its largest strategic move in years.
The battle over the deal is crucial now, as it could determine the timing, financing, and terms of the transaction, while keeping regulators and shareholders in sharp focus. A prolonged standoff can also keep the stock stuck, even if the bigger thesis remains sound.
Paramount Skydance announced it has filed a lawsuit against Warner Bros Discovery, seeking greater transparency around the Netflix deal. The company also plans a proxy fight, aiming to nominate directors and change the board via shareholder votes. Paramount is pushing a $30-per-share all-cash tender offer, directly targeting shareholders, and claimed Warner hasn’t proven “the Netflix transaction is financially superior to our actual offer.” The tender offer is set to expire Jan. 21 unless extended. Netflix and Warner did not immediately comment. 1
In December, Netflix and Warner struck a deal for Netflix to acquire Warner Bros., covering its film and TV studios plus HBO’s streaming assets. This comes after Warner spins off its Global Networks business into a separately listed company. Netflix values the cash-and-stock transaction at $27.75 per share, translating to roughly $72 billion in equity or about $82.7 billion when factoring in debt. 2
HSBC kicked off coverage on Netflix with a Buy rating and set a $107 price target, noting the stock is trading “33% below its summer 2025 peak” despite potential earnings growth. Analyst Mohammed Khallouf highlighted in a client note that the company’s “fundamental earnings outlook remains sturdy,” though he flagged rising competition for viewers’ attention. 3
Netflix shares edged up 0.7% to $90.07, bouncing within a range of $88.92 to $90.29 earlier. Warner Bros. Discovery dropped roughly 1.3% to $28.51. Paramount Skydance posted a modest gain of about 0.7%, closing at $12.15, while Disney slipped around 2.2%.
Traders are closely monitoring how fast Netflix can secure shareholder and regulatory green lights, and how it positions the deal’s execution in relation to its main streaming operations.
Next week brings the immediate earnings checkpoint. Netflix plans to release its fourth-quarter results on Jan. 20, around 1:01 p.m. Pacific time, followed by a live video interview with executives that same afternoon. 4
That downside, though, is tough to overlook: drawn-out litigation and proxy battles, rival bids pushing for concessions, and regulators seeking remedies that undercut the deal’s economics. Even if the deal holds, delays can ramp up costs and leave everyone stuck in limbo for longer.
Markets are set to focus on the next legal developments in Delaware, any move by Warner toward a shareholder vote, and whether Paramount pushes its Jan. 21 tender-offer deadline. Netflix’s Jan. 20 earnings report will likely shape the tone for the week.
