New York, January 14, 2026, 10:49 (EST) — Regular session
- Netflix shares slide as investors consider a potential move to an all-cash deal for Warner Bros’ studio and streaming assets
- Paramount Skydance is pushing its rival bid in court and preparing for a battle on the board
- Netflix is set to release its quarterly results on January 20, a date that could trigger key questions about its deals
Netflix shares dropped 1.6% Wednesday morning amid new developments in its pursuit of Warner Bros Discovery’s studio and streaming units. Warner Bros stock held steady, while Paramount Skydance slipped roughly 0.6%. (Reuters)
This report matters now because the battle has become a test of structure: how much cash Netflix is ready to commit and how fast it can win over regulators. Earnings are out next week, leaving the stock little margin for unclear answers.
Paramount ramped up the pressure Monday, suing Warner Bros Discovery to demand more details on the Netflix deal and announcing plans to nominate directors, setting the stage for a potential proxy battle. “If they want Warner Bros bad enough, raise the bid. Money talks,” said Craig Huber, analyst at Huber Research Partners. Warner Bros dismissed the lawsuit as “meritless” and pointed out that Paramount still hasn’t “raise[d] the price.” (Reuters)
Reuters reported that Netflix is gearing up to revise its offer to an all-cash deal, hoping to accelerate a process that could still drag on for months amid political and regulatory hurdles. Netflix declined to comment on the Bloomberg report Reuters cited, and Warner Bros did not immediately reply to requests for comment.
Netflix’s offer puts the Warner Bros studio and streaming units at roughly $82.7 billion. Paramount, meanwhile, has thrown in an all-cash bid of $108.4 billion for the whole company, cable TV included, Reuters says. Warner Bros pushed back, calling Paramount’s heavily debt-loaded bid “inadequate,” according to the report.
The fine print is drawing scrutiny. According to Reuters, Netflix faces a $5.8 billion termination fee if regulators don’t sign off on the deal. Meanwhile, Warner Bros would have to pay Netflix $2.8 billion should it decide to walk away from the agreement.
A tender offer involves a bid to purchase shares straight from investors, usually with a set deadline. A proxy fight aims to secure shareholder votes to oust directors — a tactic that can compel boards to resume negotiations.
Netflix co-CEOs Ted Sarandos and Greg Peters said earlier this month that the Warner Bros board is “fully supportive” of the merger agreement, calling it the “superior proposal.” Netflix has submitted its Hart-Scott-Rodino filing, kicking off the U.S. antitrust review, and is now in talks with the Justice Department and the European Commission. The deal is expected to close 12 to 18 months after signing. (Netflix)
Netflix announced it will release its fourth-quarter 2025 earnings and business outlook on Tuesday, January 20, around 1:01 p.m. Pacific time. A live video interview with CEO Sarandos, Chief Content Officer Peters, and CFO Spence Neumann is scheduled for 1:45 p.m. Pacific. (Netflix)
Investors will zero in on any remarks linking the bid to Netflix’s capital strategy—especially the level of leverage if it opts for an all-cash deal—and whether management anticipates a drawn-out regulatory review.
But plenty could still derail the deal. Regulators might prolong their reviews or push for concessions, while a higher counterbid would put Netflix’s resolve to the test. A lengthy bidding war risks pulling management’s focus away, just as they aim to set the tone for 2026.
Two key dates are fast approaching. Netflix will report on January 20, while Paramount’s tender offer expires the next day, January 21, unless extended — moments that could push the involved parties to reveal their strategies.
