New York, Feb 4, 2026, 11:17 (ET) — Regular session
- Netflix shares climbed 1.5% to $81.14 during late-morning trading, bouncing back after a volatile start
- The U.S. Senate antitrust panel grilled co-CEO Ted Sarandos about Netflix’s $82.7 billion bid for Warner Bros Discovery
- Investors are focused on two key dates: a possible Warner shareholder vote set for March and the rival-bid deadline on Feb. 20.
Netflix (NFLX.O) shares gained 1.5%, reaching $81.14 by late morning on Wednesday. Earlier in the session, the stock fluctuated between $79.25 and $81.38.
The stock bounced back a day after U.S. senators questioned co-CEO Ted Sarandos on Netflix’s $82.7 billion bid for Warner Bros Discovery (WBD.O). Lawmakers flagged antitrust risks and probed the deal’s impact on jobs and consumer choice. Sarandos described the competition for viewers’ attention as a “zero-sum game,” saying audiences simply shift between platforms. (Reuters)
Why it matters now: CNBC says Warner is expected to push the deal to a shareholder vote in March, bringing the transaction closer to a regulatory showdown. Paramount Skydance, also chasing Warner, has extended its hostile tender offer — a bid made directly to shareholders without management’s blessing — until Feb. 20. (The Sunday Guardian)
Sarandos pushed the deal as a win for consumers. “We will give consumers more content for less,” he told the panel, Bloomberg Law reported. (Bloomberg Law)
He also committed to a 45-day theatrical window for Warner Bros films before they move to streaming, the Los Angeles Times reported. This move addresses concerns from theater owners and unions about the declining number of big-screen releases. (Los Angeles Times)
Netflix pushed higher despite a weaker backdrop. The S&P 500 ETF, SPY, slipped roughly 0.3%, while the Nasdaq-100 tracker, QQQ, dropped around 1.4%.
The deal itself remains a major cloud. Back in December, Netflix agreed to acquire Warner Bros Discovery’s studios and streaming arm for $72 billion in equity value—jumping to $82.7 billion when debt is included. This move would fold HBO Max and big franchises like “Harry Potter” and “Game of Thrones” under Netflix’s banner. Paolo Pescatore, an analyst at PP Foresight, flagged the combination as one that “will be heavily scrutinized.” (Reuters)
The Senate hearing won’t stop the merger but it does crank up political pressure on a process already underway with competition regulators. Those regulators can block the deal if they determine it would harm competition. Lawmakers have also made clear they want the review to zero in on subscription streaming, not the wider video platform market.
Traders are keeping an eye on whether Washington’s scrutiny shifts the mood among Warner’s shareholders. A slight delay or stronger resistance could have an impact, especially since the purchase price is locked in and the timeline won’t budge.
The obvious risk here: regulators could sue to block the merger or impose conditions that limit how Netflix uses Warner’s content. That would leave investors stuck in a drawn-out, costly battle with no clear strategic gain.
Paramount Skydance’s tender offer is set to expire on Feb. 20, while a Warner shareholder vote might happen in March. These upcoming deadlines, not the speeches, will drive the next move in Netflix stock.
