New York, Jan 22, 2026, 10:26 AM EST — Regular session
- Netflix shares edged lower in early trading as investors reacted to the latest developments in the Warner bidding war
- Paramount and Skydance’s move to extend their tender offer has intensified the challenge to Netflix’s all-cash bid for crucial Warner assets
- Traders are focused on regulatory reviews, financing developments, and the upcoming deadline in the takeover process
On Thursday morning, Netflix, Inc. (NFLX) shares slipped roughly 1.1% to $84.41. Warner Bros. Discovery (WBD) showed little movement, while Paramount Skydance (PSKY) climbed around 1.8%.
The Warner deal dispute is shaking up the tape beyond Netflix’s usual subscriber numbers, pricing shifts, and ad trends. Traders are weighing the chances of a raised offer and a bulkier balance sheet, sending the stock on a roller-coaster ride.
Paramount Skydance pushed back the deadline for its hostile tender offer for Warner Bros Discovery to Feb. 20 on Thursday, aiming to rally more shareholder backing and counter Netflix’s bid. Paramount’s offer values Warner at about $108.4 billion, or $30 a share, compared with Netflix’s updated $82.7 billion all-cash deal at $27.75 per share for Warner’s streaming and studio units. Paramount said just 6.8% of Warner shares were tendered by the original deadline. A tender offer means buying shares directly from shareholders at a set price.
Regulators are shaping up as a key wildcard. Bloomberg News reports that EU antitrust officials plan to review the Netflix and Paramount bids simultaneously. This parallel probe might fast-track one offer but drag out the other.
Netflix reported a modest revenue beat for the October-December quarter on Tuesday, pulling in $12.1 billion and adjusted earnings of 56 cents per share. Paid subscribers topped 325 million. The company projects 2026 revenue between $50.7 billion and $51.7 billion, though the lower end misses analysts’ estimate of $50.98 billion, according to LSEG data. CFO Spencer Neumann told investors that advertising revenue is expected to hit roughly $3 billion.
Netflix secured a $59 billion bridge loan to back its all-cash deal, a form of short-term financing usually swapped out for longer-term debt. After switching its Warner offer to cash, the company bumped that commitment up by $8.2 billion. John Belton, portfolio manager at Gabelli Funds, said the announced pause in Netflix’s buyback “is really no surprise.” Investing.com
On the earnings call, co-CEO Ted Sarandos doubled down on the antitrust defense, describing the deal as “pro-consumer” and “pro-worker.” He added it would give Netflix access to “100 years of Warner Bros deep content and IP.” Co-CEO Greg Peters highlighted the streaming potential, calling HBO “an amazing brand.” Reuters
The deal overhang showed up beyond U.S. trading hours as well. Netflix shares trading in Frankfurt dropped 7% Wednesday morning. Since Netflix announced its Warner bid in early December, the stock has slid roughly 20%, Reuters reported.
At this stage, every milestone in the Warner contest moves markets. If Paramount starts winning over shareholders, or if Netflix looks ready to back off, NFLX could react far more sharply than it would to a standard subscriber report.
The road ahead is complicated. A drawn-out regulatory review might push up financing costs and tie Netflix’s hands on content budgets and capital returns. Meanwhile, raising the offer would challenge how much debt investors are ready to back.
The next key date is the Feb. 20 tender-offer deadline. If the battle extends into spring, a shareholder vote is likely by April. Investors will be watching closely for Netflix’s plans to replace bridge financing and whether share buybacks will remain on hold into the next quarter.
