New York, Jan 21, 2026, 17:02 EST — After-hours
- Netflix shares dropped 2.2% in after-hours trading, while Warner Bros Discovery is now trading above Netflix’s $27.75-per-share bid.
- Revenue for Q4 climbed roughly 18% to reach $12.05 billion; paid memberships surpassed 325 million
- The Paramount Skydance tender offer wraps up Jan. 21; Warner shareholders are set to vote on the updated deal by April
Netflix shares fell 2.2% to $85.36 in after-hours trading Wednesday, following its earnings report and the announcement of an $82.7 billion all-cash bid for Warner Bros Discovery’s studio and streaming divisions. Warner Bros Discovery shares ticked up roughly 1% to $28.53, staying above Netflix’s $27.75-per-share offer.
Netflix and Warner Bros Discovery say moving to an all-cash deal is designed to speed up getting shareholder approval and avoid market volatility. “Our revised all-cash agreement will enable an expedited timeline to a stockholder vote,” Netflix co-CEO Ted Sarandos stated. The companies expect the vote by April 2026, with closing aimed for 12 to 18 months after the original agreement. Netflix
The all-cash deal keeps the headline price steady but intensifies the battle with Paramount Skydance, which has pushed a $30-per-share cash bid, filings reveal. “This new agreement only ramps up the pressure,” said Alex Fitch, portfolio manager at Harris Oakmark, one of Warner’s largest shareholders. Paramount’s tender offer is due to expire on Jan. 21. Reuters
Netflix reported fourth-quarter revenue climbing roughly 18% to $12.05 billion, with operating income up 30% year over year, and paid memberships surpassing 325 million, according to its shareholder letter. The company projects first-quarter revenue at $12.16 billion and expects 2026 revenue between $50.7 billion and $51.7 billion. It also aims for an operating margin of 31.5%, with ad revenue set to about double.
Netflix’s revenue slightly exceeded analysts’ average forecast of $11.97 billion, with adjusted earnings per share—excluding some one-time items—reported at 56 cents, according to LSEG data. Nielsen noted a 10% jump in Netflix’s monthly viewership in December, driven by the final season of “Stranger Things” and two NFL games on Christmas Day. CFO Spencer Neumann projected advertising revenue to hit roughly $3 billion by 2026. “That seems to be the case again,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, highlighting Netflix’s readiness to endure short-term volatility for bigger, longer-term gains. Reuters
Co-CEO Greg Peters told investors the Warner assets would provide Netflix with a mature theatrical operation and bring HBO Max into the fold, a brand he insisted holds a premium in scripted TV. “When we got into the hood, there were several things we saw that were just really exciting,” Peters said. Reuters
Netflix secured a $59 billion bridge loan, a short-term funding move that can be swapped for longer-term debt down the line, then boosted that commitment by $8.2 billion. It also put share buybacks on hold to preserve cash for the transaction. So far, the company says it has racked up roughly $60 million in financing-related expenses.
Warner Bros shares trading above Netflix’s $27.75 offer signal investors may be betting on a higher bid or better deal terms. Since Netflix agreed to the merger in early December, its stock has dropped roughly 15%, a decline that nudged the company toward a cash-only offer.
The deal still faces intense antitrust scrutiny both in the U.S. and internationally. Lawmakers have raised concerns that a merged Netflix-Warner might leverage its scale to pressure content creators and ultimately hurt consumers. “The worry is whether they will be positioned to pay less for content,” said Bill Baer, a former top U.S. antitrust official now at Brookings. Reuters
European Union antitrust officials are reportedly preparing to review Netflix’s and Paramount’s bids simultaneously, Bloomberg News says, creating a rare dual-track process as both offers move forward on comparable schedules. Neither Netflix, Paramount, Warner Bros, nor EU regulators have responded to the report.
Paramount Skydance’s tender offer expires quickly, on Jan. 21. Netflix and Warner have set an April vote for Warner shareholders on the revised deal. Traders are on alert for any counterbid and early regulator signals as filings begin to surface.
