New York, January 28, 2026, 11:31 (EST) — Regular session
Netflix shares slipped 0.8% to $84.92 in late morning trading Wednesday. The U.S. Senate Judiciary Committee’s antitrust subcommittee announced a hearing set for Feb. 3 to review the proposed Netflix-Warner deal. 1
The hearing comes as Netflix co-CEOs Ted Sarandos and Greg Peters push investors to back their nearly $83 billion bid for Warner Bros Discovery’s studio and streaming assets — a major shift for a company known more for building than buying. Netflix shares were already feeling pressure before the offer, Reuters reported last week. 2
Senator Mike Lee, who chairs the panel, cautioned the deal might turn into a “killer non-acquisition”—his term for a merger that sidelines a competitor while sensitive data shifts hands during due diligence. The Capitol Forum noted Lee pressed both firms on what safeguards are in place. Netflix’s Sarandos and a Warner executive are slated to testify at the Feb. 3 hearing. 3
Netflix fell even as a tech-driven rally lifted major indexes. The S&P 500 climbed 0.3%, passing the 7,000 mark, while the Nasdaq gained 0.6% early on, Reuters reported. “These big round numbers can be difficult psychological tests for the market,” Jeff Buchbinder, chief equity strategist at LPL Financial, told Reuters, highlighting momentum fueled by expectations of strong Big Tech earnings. 4
Netflix reported $12.1 billion in quarterly revenue last week, with paid subscribers surpassing 325 million. The company projects full-year 2026 revenue between $50.7 billion and $51.7 billion. CFO Spencer Neumann also said advertising revenue is expected to double year over year, hitting roughly $3 billion. 5
Deal mechanics—and who ends up footing the bill—are still the market’s hottest topic. Netflix’s Greg Peters told the Financial Times that Paramount’s competing bid “doesn’t pass the sniff test,” Reuters reported. He argued Netflix’s updated offer brings “greater deal certainty” compared to the rival proposal, which leans on $55 billion in debt. 6
Warner Bros Discovery shares slipped 0.3% to $28.00, with Walt Disney shares falling 0.9% to $109.62. Traders noted that investors see the Warner assets as the prize, while viewing the bidders themselves as the risk.
Still, the risks on the downside are clear. The Wall Street Journal revealed that Lee has flagged worries over the merger review process and the competition issues tied to merging the top streamer with Warner’s HBO platform. This could complicate the Justice Department’s review and drag out the timeline. 7
Macro factors might cloud the tape before deal news hits. The Federal Reserve is widely expected to keep rates unchanged on Wednesday, with the policy announcement set for 2 p.m. EST and Chair Jerome Powell speaking half an hour afterward, Reuters reported. “There is no urgency to lower rates aggressively,” noted Seema Shah, chief global strategist at Principal Asset Management, ahead of the meeting. 8
Netflix faces its next major test in Washington. The Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights has scheduled a hearing on the Netflix-Warner deal for Tuesday, Feb. 3 at 2:30 p.m., taking place in the Dirksen Senate Office Building. 9
