New York, Jan 14, 2026, 11:07 (EST) — Regular session
- Netflix shares slip roughly 2% as investors digest news of a possible switch to an all-cash offer for Warner Bros assets
- Paramount, a rival bidder, intensifies its fight by filing a lawsuit and threatening a proxy battle
- Attention shifts to Netflix earnings dropping Jan. 20, with Paramount’s tender deadline following on Jan. 21
Netflix shares dropped nearly 2% on Wednesday after a report surfaced that the company plans to change its offer for parts of Warner Bros Discovery to an all-cash deal. The stock slipped to $88.51, with Warner Bros Discovery down 0.3% at $28.78.
The proposed change matters because it could accelerate the shareholder vote and streamline the deal on paper, just as the takeover battle grows more contentious. It also refocuses attention on how Netflix plans to finance a cash-heavy bid and whether regulators will approve it.
A source close to the situation told Reuters that Netflix is now considering an all-cash offer for Warner Bros Discovery’s studios and streaming units, moving away from its earlier cash-and-stock bid valued at $82.7 billion. Meanwhile, Paramount Skydance is pushing a rival all-cash offer for the entire company. Warner Bros’ board has dismissed Paramount’s proposal as reliant on excessive debt and “remains inadequate.” Netflix has agreed to pay a $5.8 billion termination fee if regulators block the deal, while Warner Bros would owe $2.8 billion if it decides to walk away. (Reuters)
Paramount filed suit against Warner Bros in Delaware on Monday, demanding more details about the Netflix deal. The company also plans to nominate directors, setting up what could turn into a proxy battle. Paramount insists investors need this information before its Jan. 21 tender offer — a direct attempt to buy shares from Warner Bros shareholders — expires. Additionally, Paramount wants to change bylaws to require a shareholder vote on any cable-TV spinoff. “If they want Warner Bros bad enough, raise the bid. Money talks,” said Craig Huber, analyst at Huber Research Partners. (Reuters)
The broader market dragged down sentiment. Major Wall Street indexes slipped again as traders absorbed hefty bank earnings alongside new U.S. data, fueling bets on rate cuts later this year. (Reuters)
Netflix is gearing up to release its fourth-quarter 2025 earnings next Tuesday, Jan. 20, around 1:01 p.m. Pacific time. Shortly after, co-CEOs Ted Sarandos and Greg Peters, along with CFO Spence Neumann, will hold a live video interview. (Netflix)
But the risks are clear: a higher cash offer might pressure Netflix’s balance sheet, trigger stricter antitrust reviews, and keep the stock stuck on deal chatter rather than company fundamentals. If a bidding war drives the price higher or regulators drag things out, investors could grow impatient.
Traders are eyeing any official updates to Netflix’s offer terms, along with Warner Bros and Paramount’s next steps before the Jan. 21 tender deadline. Netflix’s earnings report on Jan. 20 could shift cash flow expectations right as the deal calculations intensify.
