New York, Feb 3, 2026, 18:07 EST — After-hours
- Netflix shares dipped 3.4% by Tuesday’s close and held steady in after-hours trading
- Warner Bros’ deal remains in the spotlight amid Senate antitrust scrutiny and an upcoming shareholder vote
- Investors are focused on the rival tender-offer deadline set for Feb. 20 and a potential vote in March
Netflix shares dropped 3.4% to $79.94 on Tuesday, shedding $2.79 from the previous close as renewed deal scrutiny rattled investors. The stock held steady in after-hours trading.
The key issue centers on Netflix’s plan to acquire Warner Bros Discovery’s streaming and studio assets in a deal worth roughly $82.7 billion. CNBC says shareholders are expected to vote on the deal in March. Meanwhile, Paramount Skydance has pushed its hostile tender offer—aimed straight at shareholders—out to Feb. 20.
In written testimony submitted Tuesday, Ted Sarandos described the deal as mainly vertical, assuring that Netflix will continue releasing Warner Bros films in theaters with 45-day windows. He also highlighted significant subscriber overlap between Netflix and HBO Max, noting the merged company plans to offer discounts to customers subscribing to both.
Sarandos appeared before the Senate Judiciary Committee chaired by Mike Lee, who cautioned that the deal might reduce competition and pull movies out of theaters. Lee accused Netflix of aiming to be “the one platform to rule them all,” while Sarandos described the battle for viewers’ attention as a “zero-sum game.” Reuters
Regulators remain the key wildcard—not just in Washington. The Department of Justice is currently reviewing the deal, while the hearing kept returning to one question: what truly qualifies as a competitor? Subscription streaming, free ad-supported video, or the entire TV screen?
A fresh securities filing raised a subtle warning. Reed Hastings filed a Form 144, signaling he might sell as many as 390,970 Netflix shares linked to stock option exercises.
Netflix faced resistance beyond the deal, notably in Europe. Berlin-based VDS reported voice actors boycotting the streamer due to a contract clause permitting recordings to be used for AI training. Chairperson Anna-Sophia Lumpe added that Netflix has cautioned German audiences they might have to settle for subtitles rather than dubbed audio if the boycott continues.
Netflix is zeroing in on operations. In its recent quarterly report, it projected 2026 revenue between $50.7 billion and $51.7 billion. The company expects advertising revenue to roughly double this year, with CFO Spencer Neumann estimating ad sales around $3 billion.
The downside is clear. A drawn-out antitrust review, a bitter proxy battle, or a stronger competing offer could stall the deal, leaving Netflix stuck trading as a takeover target rather than a growth stock — headlines dictating the market moves.
Coming up is the Feb. 20 tender-offer deadline from Paramount Skydance, along with the Warner Bros shareholder meeting date, likely set for March. Traders will keep an eye on cues from U.S. and European competition regulators as the review shifts from chatter to concrete action.
