New York, Jan 14, 2026, 16:56 (EST) — After-hours.
Netflix shares slipped about 2% after the bell on Wednesday after a source told Reuters the streamer is preparing an all-cash bid for Warner Bros Discovery’s studios and streaming businesses, replacing an earlier cash-and-stock offer valued at $82.7 billion. The stock traded at $88.55, down $1.79 from Tuesday’s close, after moving between $87.99 and $92.35 during the session. 1
The possible switch to cash lands at an awkward moment for investors who had been leaning on Netflix’s steady margin story. A bigger cash commitment would put the spotlight back on leverage, funding costs and what the company is willing to pay for scale.
It also turns a deal narrative into a stock narrative. A blockbuster acquisition can change what “good” earnings look like for a few quarters, even if subscribers keep coming in.
The bidding war has been driven by Paramount Skydance’s hostile pursuit of Warner — hostile meaning it is pressing shareholders without the target board’s backing — and Netflix’s push to lock up the studio and streaming crown jewels. Warner’s assets include Warner Bros and HBO, along with franchises such as Harry Potter and DC, and the latest talk is that Netflix wants to make its offer simpler and faster for shareholders to judge. 2
Some investors are cheering the fight anyway. “We’re pleased with the bidding war here,” Oakmark fund manager Bill Nygren told CNBC on Wednesday, as speculation swirled about whether Netflix will have to put more cash on the table. 3
Netflix’s wobble came in a softer tape. U.S. stocks slipped for a second day as investors digested big-bank earnings and fresh economic data, a backdrop that has made deal headlines a bigger driver of single-stock moves than usual. 4
For traders, the next question is whether “considering” becomes “filing.” Any formal change to the terms would likely bring new detail on timing and, crucially, how Netflix plans to fund a cash-heavy offer.
A proxy fight — where shareholders are asked to vote on board seats and deal terms — would add another layer of uncertainty. That kind of fight can drag on, and it tends to keep stocks jumpy even when fundamentals are stable.
There is a downside path. If investors decide Netflix is stretching for growth or overpaying for content libraries, the stock can take the hit long before regulators or shareholders make a final call.
The next scheduled catalyst is closer than the lawyers. Netflix said it will post fourth-quarter 2025 results and its business outlook on Tuesday, Jan. 20, 2026 at about 1:01 p.m. Pacific, followed by a live video interview at 1:45 p.m. Pacific, when analysts are likely to press management on the deal’s financing and priorities. 5
