NEW YORK, Jan 10, 2026, 7:16 PM EST — Market closed.
- Netflix closed Friday 1.2% lower at $89.46, lagging behind the broader market upswing.
- The Warner Bros Discovery bidding battle heats up as the Jan. 21 tender deadline approaches.
- Netflix will release its fourth-quarter results after the bell on Jan. 20.
Netflix Inc shares closed Friday down 1.2% at $89.46, hitting an intraday low of $88.33 as investors mulled over deal risks and the upcoming earnings report.
Markets are closed for the weekend, leaving a tricky situation: a major acquisition underway, a rival bidder stepping up with cash, and Netflix’s earnings report just days away.
The reason it matters now is straightforward. The stock has once again become headline-driven, as the Warner Bros Discovery deal could rapidly reshape Netflix’s footprint — and put investors’ appetite for leverage and execution risk to the test.
Warner Bros Discovery’s top shareholders remain divided over Paramount Skydance’s $30-a-share tender offer, which closes Jan. 21, even as Warner’s board throws its weight behind Netflix’s $27.75-a-share cash-and-stock deal, Reuters reported. Alex Fitch, partner and portfolio manager at Harris Oakmark, emailed that “a tie goes to the incumbent,” while investor Mario Gabelli told CNBC he’s “likely” to tender but noted Netflix “has to simplify their bid.” 1
Warner’s board chair, Samuel Di Piazza Jr., slammed Paramount’s latest bid as “inferior,” pointing to what he called an “extraordinary amount of debt financing.” Warner’s deal with Netflix offers shareholders $23.25 in cash, plus Netflix shares valued around $4.50, along with a stake in the planned Discovery Global spin-off. The company estimates the cost of walking away at roughly $4.7 billion. 2
Paramount fired back, calling Netflix’s offer one filled with “multiple uncertain components.” The company pointed out that Netflix shares are trading below the low end of a collar, a feature that limits the stock portion’s value. Paramount CEO David Ellison insisted their bid provides “a more certain, expedited path to completion” and valued the Netflix deal at $27.42 per share in its own assessment. 3
Netflix pushed focus onto the process, confirming it has submitted Hart-Scott-Rodino filings—the U.S. premerger notification that kicks off antitrust review. The company is in talks with regulators, including the Justice Department and the European Commission. It expects the deal to close within 12 to 18 months after signing. Netflix also said the planned spin-off of Warner’s linear networks business into Discovery Global will remain intact. 4
Another regulatory update came from Europe. Sources told Reuters that Netflix and other U.S. tech giants won’t face binding rules under the EU’s Digital Networks Act overhaul. Instead, they’ll be subject to a voluntary framework, with the plan expected by Jan. 20. 5
The broader market has been holding up well, which only makes Netflix’s slide more noticeable. The S&P 500 hit a record close on Friday, boosted by a softer U.S. jobs report that kept hopes alive for Federal Reserve rate cuts. Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, described the employment data as “fairly strong” despite the lighter payroll numbers. Meanwhile, the Supreme Court is set to rule on the legality of President Donald Trump’s tariffs on Jan. 14. 6
Netflix is gearing up for a key moment. The streaming giant plans to release its Q4 results and business outlook on Jan. 20 after the market closes. Co-CEOs Ted Sarandos and Greg Peters, along with CFO Spence Neumann, will hold a live video interview that same day, the company confirmed. 7
Investors will scrutinize the report for any changes in tone on spending and cash flow, as well as the level of detail management provides on the Warner plan and its financing strategy. The share price plays a crucial role, affecting the value of the stock portion Warner holders are expected to take.
The downside is clear. If regulators prolong their reviews or Netflix has to improve terms to outbid a cash-heavy rival, the deal could become a costly distraction, raising leverage concerns at the worst possible time.
NFLX faces two key dates this week: earnings on Jan. 20 and the Jan. 21 deadline for Warner investors to decide on Paramount’s tender offer.
