NEW YORK, February 25, 2026, 10:38 EST — Regular session
Netflix, Inc. (NFLX.O) climbed nearly 5% to $81.92 during Wednesday’s morning session, with a brief spike to $82.30 as traders weighed the impact of the Warner Bros Discovery takeover fight—an episode that might push the streaming giant to reconsider its bid. The Nasdaq Composite added around 0.9%.
Why does it matter? The battle goes beyond just the outcome for Warner. Investors are watching what Netflix pays, how the company finances that bill, and whether the stock starts to look more like a leveraged buyout play than the straightforward streaming growth name they’ve known.
Traders are chasing the price, with Paramount’s sweetened $31-a-share cash offer for Warner topping Netflix’s $27.75-a-share bid. Both sides are leaning hard on aggressive cost reduction claims: Netflix is promising $2 billion to $3 billion in yearly savings, but Paramount argues the merged group would wring out more than $6 billion.
Warner on Tuesday said it would keep talking with Paramount after the Skydance-backed group bumped its bid to $31 a share, tacking on a “ticking fee”—extra payout that increases if closing drags out—and hiking the regulatory breakup fee to $7 billion. Netflix, for its part, is putting $27.75 per share in cash on the table for Warner’s studios and HBO Max. Warner, meanwhile, is eyeing a spinoff of its cable TV business into a new Discovery Global, which board members estimate could end up valued anywhere from $1.33 to $6.86 per share. Matthew Dolgin of Morningstar flagged possible shareholder suits if Netflix prevails, and Ross Benes at eMarketer questioned if the higher price tag is about “business interests rather than ego”; Netflix gave no comment. Reuters
Netflix has been talking straight to investors lately, a Monday filing revealed, even posting a transcript of co-CEO Ted Sarandos’ chat with BBC Radio 4. Sarandos described the company as “very disciplined buyers” and brushed off speculation about raising the offer, saying he didn’t want to “do hypotheticals.” SEC
According to Reuters, Paramount came back with a bigger offer after Warner pushed for a “best and final” bid. The race has already caught the eye of antitrust regulators in both the US and Europe. Netflix, for its part, insists the merger would actually help consumers and boost its position against Google’s YouTube. Lawmakers, though, are flagging worries about too much power piling up in media and distribution. Reuters
But this trade can turn on a dime. Should Netflix end up shelling out more, investors might factor in higher debt loads or a squeeze on spending. And if regulators show any resistance, sentiment could shift negative in a hurry.
Warner shareholders get their say on Netflix’s offer come March 20. In the lead-up, eyes are on whether Warner’s board calls Paramount’s latest bid superior, which could force Netflix to respond—match, sweeten, or walk away.
