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. (Reuters)
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. (Reuters)
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. (Netflix)
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. (Sec)
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. (Reuters)
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. (Reuters)
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. (Yahoo Finance)
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. (Yahoo)
