New York, Jan 28, 2026, 19:02 EST — After-hours
- After the bell, Netflix shares dipped roughly 1.1%, sliding to a session low of $84.25.
- The U.S. Senate antitrust panel scheduled a hearing for Feb. 3 to discuss Netflix’s proposed merger with Warner.
- UK politicians have called on Britain’s competition watchdog to launch a full review.
Netflix shares slipped 1.1% to $84.64 in after-hours Wednesday, adding to a volatile run as investors weighed increased regulatory scrutiny of its planned Warner Bros deal. The stock fluctuated between $84.25 and $86.43 during the session, with roughly 37.6 million shares traded.
The U.S. Senate Judiciary Committee announced that its antitrust subcommittee will hold a hearing on Feb. 3 to review the competitive effects of the proposed Netflix-Warner Brothers merger. Paramount Skydance remains in the race for Warner and has pushed back the deadline for its hostile tender offer to Feb. 20, according to the committee note. 1
Pressure is mounting in the UK as over a dozen politicians and ex-policymakers have called on the Competition and Markets Authority to conduct a thorough review. They warned in a letter obtained by Reuters that the deal would “cement an already dominant player” in TV streaming, potentially harming consumers. 2
On Jan. 20, Netflix and Warner Bros. Discovery announced they revamped their deal into an all-cash offer, pegging Warner’s value at $27.75 per share. Warner shareholders will also get shares in a spun-off Discovery Global entity. Netflix co-CEO Ted Sarandos said the updated agreement “provides greater financial certainty at $27.75 per share in cash,” while Warner CEO David Zaslav described it as a move closer to merging the two firms. 3
A recent regulatory filing revealed that Netflix boosted its senior unsecured bridge term loan commitments to $42.2 billion. This short-term financing is typically arranged to handle cash requirements before securing longer-term funds. The 8-K also detailed termination fees, including $5.8 billion Netflix would owe Warner under specific antitrust-related scenarios. 4
The broader market offered little support to investors. The Nasdaq nudged up 0.17%, while the S&P 500 closed nearly unchanged after the Federal Reserve kept rates steady at 3.5%–3.75%. Focus remained locked on individual stock news and potential deal risks. 5
Netflix is pushing to steer attention back to its core business. The company reported $12.1 billion in revenue for the October-December quarter and hit 325 million paid subscribers. It also projected 2026 revenue between $50.7 billion and $51.7 billion, with advertising revenue expected to double year-over-year to roughly $3 billion, according to its CFO. “Netflix has not shied away from doing what’s right for long-term growth,” Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said after the results. 6
On the Street, one firm is pushing back against the negative sentiment. Phillip Securities upgraded Netflix from “Sell” to “Accumulate” and bumped its price target to $100, according to a summary of analyst calls. 7
The downside risk remains. A stricter antitrust review might slow the timeline, impose extra conditions, or even kill the deal. That would leave Netflix facing higher borrowing costs and a longer stretch of limited capital returns while holding onto its cash.
The next big date for investors is Feb. 3, when the Senate antitrust panel plans to hold its hearing — a key event traders believe will set the tone for the regulatory battle and influence Netflix’s stock trajectory. 8
