New York, January 29, 2026, 11:29 EST — During regular session
- Netflix shares slipped roughly 2% in late morning trading
- Political scrutiny is mounting in both the U.S. and Britain over the proposed Warner Bros tie-up
- Traders are focused on a Senate antitrust hearing scheduled for next week as the next key catalyst
Shares of Netflix dipped 2.3% to $82.69 in late morning trading Thursday, hitting a session low of $82.37. Investors appeared rattled by growing political scrutiny surrounding the company’s planned Warner Bros Discovery deal.
The stock’s moves have resembled a referendum on the merger. Every fresh cue from regulators or lawmakers tweaks the odds of approval, and the market adjusts quicker than the underlying fundamentals.
It’s significant since Netflix tends to follow the broader growth trend. When the Nasdaq dips amid concerns over big-tech spending, added deal uncertainty only weighs it down further.
Over a dozen UK politicians and ex-policymakers have called on the Competition and Markets Authority to conduct a thorough review of Netflix’s acquisition bid, Reuters reports. Their letter, seen by Reuters, cautioned that the deal would “cement an already dominant player” and pose “a substantial lessening of competition.” Signatories include former culture ministers Chris Smith, Oliver Dowden, Karen Bradley, and ex-BBC director-general Tony Hall. The CMA declined to comment outside of a formal probe, while Netflix and Warner Bros. did not immediately respond to Reuters’ inquiries. (Reuters)
Wall Street was on edge. The Nasdaq fell roughly 1%, while the S&P 500 dipped 0.33%, weighed down by Microsoft’s decline, which kept pressure on tech stocks after earnings. Investors grappled with another wave of heavy AI spending. “It’s going to be a show me the money story for AI,” said Adam Turnquist, chief technical strategist at LPL Financial. (Reuters)
Software stocks weighed on the tech sector as J.P. Morgan analysts flagged that “the malaise in software sentiment persists.” Turnquist noted the market seems to be “pricing a worst case scenario” for traditional software amid rising AI competition. (Reuters)
For Netflix, this context is crucial since the Warner deal discussion unfolds amid a wider market debate over the returns of heavy spending—and just how patient investors will remain.
The downside is clear: if regulators launch deeper investigations or lawmakers use the deal as a test for consolidation, timelines could drag out and headlines grow more critical. In that case, the stock might continue slipping, even without new company developments—particularly if the Nasdaq remains under pressure.
Washington remains the next major checkpoint. On February 3, the Senate Judiciary Committee’s antitrust subcommittee will hold a hearing on the proposed Netflix–Warner deal. Meanwhile, Paramount Skydance, a rival bidder, has pushed back its hostile tender offer deadline to February 20, prolonging the takeover battle. (Reuters)
