NEW YORK, Jan 27, 2026, 11:00 EST — Regular session
- Shares of Netflix slipped roughly 1.2% in late morning deals amid growing political scrutiny over its Warner bid
- UK politicians pressed the CMA to launch a full competition review, intensifying the growing regulatory pressure
- A Wall Street analyst’s upgrade yesterday provided only modest backing, as deal risk continues to weigh on sentiment
Netflix shares dipped Tuesday as British lawmakers called on the UK’s competition authority to scrutinize the streamer’s proposed Warner Bros Discovery deal. The dispute is increasingly taking on a political edge, overshadowing financial concerns.
Netflix slipped 1.2% to $84.70 by 11:00 a.m. EST, surrendering earlier gains as investors questioned if the deal’s timeline is dragging out once more.
Why this matters now: the stock has turned into a stand-in for regulatory risk linked to the Warner bid, as investors weigh the chances the deal will face drawn-out reviews across multiple jurisdictions, potentially lasting months and demanding concessions.
Any forced delay sparks follow-up concerns — financing, management attention, and whether Netflix might have to cough up more to secure the deal if competing bids and political hurdles continue to swirl.
Over a dozen British politicians and former policymakers have urged the Competition and Markets Authority to conduct a full review, warning the deal would “cement an already dominant player” in TV streaming and risk “a substantial lessening of competition,” Reuters reported. The letter, dated Jan. 23, was addressed to CMA chief executive Sarah Cardell, according to Reuters. Source
The CMA declined to speculate on cases not under formal investigation, Reuters reported. Netflix and Warner did not immediately reply to Reuters’ requests for comment.
Senator Mike Lee, chair of the Senate Judiciary antitrust subcommittee, has zeroed in on the deal and set a hearing for Feb. 3, The Capitol Forum reports. Lee cautioned that the review process could be “misused” to bog down a competitor, dubbing the tactic a “killer non-acquisition”—a merger attempt that damages a rival even if it never goes through. Source
Warner’s camp fired back. A Warner Bros spokesperson commended Netflix for its “hard” efforts to finalize the deal and emphasized that Warner “continues to operate as a fully independent company,” The Capitol Forum reported.
Just a day earlier, Phillip Securities analyst Helena Wang raised Netflix’s rating from “Sell” to “Accumulate,” boosting her price target to $100. She highlighted Netflix’s “clear leadership” in video-on-demand and its strong pricing power, according to a note cited by TheFly. (An “Accumulate” rating suggests investors should add shares gradually rather than buy aggressively.) Source
Warner Bros Discovery shares held steady at $28.24. Meanwhile, rival bidder Paramount Skydance dropped 3.2%, closing at $11.51, highlighting how fast deal chatter ripples through the sector.
The risk is straightforward: should regulators launch deeper investigations or signal strong resistance, Netflix’s bid might come with strings attached that dilute its strategic value — or drag out the process, leaving the stock driven more by news than by earnings.
Investors are turning to the Feb. 3 Senate hearing highlighted by The Capitol Forum. Signals from UK regulators on whether the CMA will launch a formal review could shape the next move for NFLX.
