LOS ANGELES, Jan 20, 2026, 06:49 (PST)
- Netflix shifted its Warner Bros. bid to an all-cash deal at $27.75 per share, maintaining the same headline price
- The move comes just hours ahead of Netflix’s fourth-quarter earnings report, due after the U.S. market closes
- Options traders are gearing up for a volatile move after earnings as the bidding war with Paramount continues to intensify
Netflix has shifted to an all-cash bid for Warner Bros Discovery’s studio and streaming assets, holding firm on the $82.7 billion valuation as it seeks to edge out Paramount Skydance. According to a regulatory filing, Warner’s board gave unanimous approval to the updated offer. Reuters
The shift zeroes in on Netflix’s fourth-quarter earnings due Tuesday, with investors likely to grill executives about financing and next steps if regulators drag their feet. Netflix said it anticipates a special Warner shareholder meeting to vote on the deal by April.
Netflix shares climbed roughly 1.7% to $89.49 in early trading. Warner Bros. Discovery slipped close to 1%, landing at $28.30. Paramount Skydance dipped around 1.5%, trading near $11.63.
Netflix and Warner confirmed the revised deal keeps the price at $27.75 per Warner share and aims to accelerate the shareholder vote. Warner’s split into two publicly traded companies should wrap up in six to nine months. The Netflix deal is expected to close 12 to 18 months after the original merger agreement, the companies said. Apnews
Analysts are forecasting revenue around $11.97 billion for the quarter, with adjusted earnings per share (EPS) pegged at $0.55, according to a recent earnings preview. EPS, which divides profit by shares outstanding, remains a key metric for quarter-over-quarter comparison. Stockstory
Derivatives traders are pricing in big swings. Options on Netflix, which let investors speculate on the stock’s future moves, suggest a potential 7% shift up or down by week’s end. That’s the takeaway from Investopedia’s recent pricing analysis. Investopedia
Some bulls highlight a packed holiday lineup—like the “Stranger Things” finale and Christmas NFL games—as a buffer for the earnings report, even though the deal continues to steal the spotlight. Benchmark analyst Daniel Kurnos was blunt: “there is no chance that this print distracts investors from the ongoing circus” surrounding Warner. Tipranks
Paramount is taking a straightforward approach with a $30-a-share all-cash bid, offered as a tender offer set to expire on Jan. 21. Warner has turned it down, saying shareholders stand to gain more from its planned cable spinoff.
Discovery Global, the spinoff set to hold TV assets like CNN, TNT Sports, and the Discovery+ streaming platform, carries a wide valuation range from $1.33 to $6.86 per share, according to Warner’s board. That wide spread has turned into a major sticking point in the ongoing takeover battle.
“Unless Paramount raises its bid, the appeal will be window dressing,” said Emarketer analyst Ross Benes, while Paramount pushes for shareholder backing and takes Warner’s disclosures to court.
There’s plenty of room for this deal to falter. An all-cash bid might cut down on volatility tied to Netflix’s shares, but it won’t ease antitrust concerns or the challenges of managing a streaming operation while acquiring a competitor’s content. Matt Britzman, senior equity analyst at Hargreaves Lansdown, labeled the strategy “a smart pivot,” but added it “does nothing to ease regulatory scrutiny.”
Tuesday’s earnings call faces a dual challenge. It must prove Netflix’s main business remains solid, but the tougher hurdle is breaking down — in clear dollars and timelines — how the Warner bet pays off without sticking shareholders with the tab.
