New York, Jan 24, 2026, 09:02 EST — Market closed.
Netflix co-CEO Greg Peters dismissed Paramount’s rival bid for Warner Bros Discovery, saying it “doesn’t pass the sniff test,” as the takeover tussle continues to grab attention this month. Netflix shares climbed 3.1% on Friday, closing at $86.12. Reuters
The battle over the deal has shifted beyond mere M&A speculation. Investors are now grappling with the actual likelihood of it closing, as Paramount extends its hostile $30-a-share tender offer—aimed at buying shares straight from shareholders—while Warner prepares for a vote on the Netflix deal, potentially as soon as April.
Paramount’s preliminary proxy statement reveals a twist for shareholders: the $27.75-per-share cash offer in the Netflix deal isn’t fixed. It could shrink due to a “net debt adjustment” based on how much debt Warner’s cable-network spin-off takes on. Paramount warns this could drag the cash payout down to as low as $21.40 per share. Securities and Exchange Commission
Since Netflix kicked off its Warner bid in early December, its shares have dropped roughly 20%. The company has informed investors it will halt share buybacks to conserve cash for the acquisition. Despite a bounce on Friday, the broader picture remains: every filing and comment is being parsed as a gauge of deal risk.
Netflix shifted to an all-cash offer this week after its initial cash-and-stock proposal faltered alongside its share price. The revised bid aims to provide Warner shareholders with greater certainty and push for a quicker vote, even as Paramount pushes for negotiations and threatens a proxy fight — an effort to secure shareholder votes and possibly change the board.
Netflix’s latest results came with a takeover cloud hanging over them. The company beat revenue and earnings forecasts for the holiday quarter but projected 2026 revenue at the low end, falling short of market expectations. CFO Spencer Neumann told investors ad revenue would hit about $3 billion. “Historically, Netflix has not shied away from doing what’s right for long-term growth,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. Reuters
A regulatory filing late Thursday revealed Neumann was awarded 56,977 restricted stock units, set to start vesting quarterly on Feb. 3. While these grants are routine, they arrive amid heightened investor scrutiny over management incentives and timing.
Broader market trends weighed on Netflix this week. On Friday, the Dow slipped while the Nasdaq climbed, wrapping up a volatile stretch marked by Intel’s disappointing forecast and tariff-driven jitters. Investors now brace for a packed schedule of major tech earnings and a key Federal Reserve meeting next week.
The deal remains Netflix’s biggest wildcard. Regulators might clamp down on streaming market concentration. Meanwhile, shareholders could hesitate if the cash payout feels less certain than the headline states — or if Paramount ups its bid, sparking another bidding war.
Feb. 20 marks the next crucial deadline for Paramount’s tender offer on Warner shares, set to expire then unless extended, per a recent filing. Traders will focus on that date more than any weekend chatter as Monday’s session approaches.
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