New York, Jan 13, 2026, 17:39 EST — After-hours
Netflix (NFLX.O) shares gained roughly 1% to $90.32 in after-hours trading Tuesday following reports the streamer is considering an all-cash bid for Warner Bros Discovery’s studios and streaming units.
Paramount Skydance has taken Warner Bros to court in Delaware and launched a proxy fight, pushing shareholders to back its $30-a-share all-cash offer. The company insists its bid beats Netflix’s cash-and-stock deal. Paramount’s tender offer, which lets it buy shares directly from investors, is due to expire on Jan. 21 unless it gets extended.
An all-cash approach would eliminate one variable — Netflix’s share price — but it would also spotlight just how much cash Netflix is ready to put on the table, and how much debt it would take on to make it happen.
On Jan. 7, Netflix announced it would acquire Warner Bros’ film and TV studios, along with HBO Max and HBO, in a cash-and-stock deal valued at roughly $82.7 billion, or $27.75 per share. The streaming giant expects the transaction to close within 12 to 18 months of signing the merger agreement and confirmed it has filed its Hart-Scott-Rodino notification, kicking off the U.S. antitrust review. Netflix co-CEOs Ted Sarandos and Greg Peters called the merger a blend of “highly complementary strengths.” ir.netflix.net
Warner Bros’ board urged shareholders to reject Paramount’s offer, calling it weaker than the Netflix deal. Board chair Samuel A. Di Piazza, Jr. highlighted Paramount’s plan relies on “an extraordinary amount of debt financing,” raising concerns over deal completion. The company also faces a $2.8 billion termination fee to Netflix if it walks away, adding to about $4.7 billion in extra costs tied to ending the agreement. Warner Bros. Discovery IR
Warner Bros shares gained 1.7%, closing at $28.86 in after-hours trading. Paramount Skydance, however, slipped 0.2% to $12.14.
Netflix investors now face a key question: would a leaner, cash-only setup smooth the sale of Warner assets to shareholders and regulators, or simply drive the price higher?
The downside is clear. A bidding war can push a buyer to overpay and strain financing, while also delaying approvals. If debt markets tighten or Washington steps up scrutiny, the equation shifts quickly. Another risk: Paramount might raise its offer once more, dragging the deal into the first quarter.
Netflix’s next major event is on Jan. 20, when the company plans to release its fourth-quarter results and hold a live video interview with Sarandos, Peters, and CFO Spence Neumann. During the session, they’ll field questions from sell-side analysts.
