NEW YORK, Jan 13, 2026, 10:45 EST — Regular session
- Netflix shares were little changed as a rival bidder pressed a legal challenge to the Warner deal
- Paramount is seeking more disclosure and lining up a board fight over Warner’s planned tie-up with Netflix
- Wall Street is looking to Netflix’s Jan. 20 earnings for clarity on spending and any deal commentary
Netflix shares inched up 4 cents on Tuesday after Paramount Skydance filed suit against Warner Bros Discovery to force more disclosure around Warner’s agreement with Netflix, keeping the takeover fight in play. The stock was up 0.05% at $89.45, after trading between $88.90 and $90.97.
The courtroom push matters because it drags the dispute out of press releases and into Delaware, where timeline and detail can shift fast. For Netflix, the noise lands at an awkward moment: investors are trying to decide whether the Warner deal is a growth lever or a distraction that gets expensive.
Netflix will post fourth-quarter results and its business outlook on Jan. 20, after the U.S. market closes, the company said. Investors will scan the release for signs on content spending and advertising momentum, and for any fresh language on the Warner transaction.
Paramount said it filed the lawsuit in the Delaware Court of Chancery and plans to nominate directors at Warner’s 2026 annual meeting, a proxy fight — a campaign to replace board members and force a shareholder vote. Paramount’s tender offer for Warner shares, an offer to buy stock directly from investors, expires on Jan. 21, and it wants more disclosure before shareholders decide whether to tender. “If they want Warner Bros bad enough, raise the bid. Money talks,” said Craig Huber, an analyst at Huber Research Partners.
In its own letter to Warner shareholders, Paramount CEO David Ellison said the effort was designed to put the decision in investors’ hands, not the boardroom. The actions “ensure that you get the final decision,” Ellison wrote. Paramount
Analyst notes kept coming too. TD Cowen cut its price target — an analyst forecast for where a stock could trade — to $115 from $142 and kept a Buy rating ahead of Netflix’s Jan. 20 report, pointing to its updated long-range model and a heavy content calendar. TD Cowen said it expects 14.2 million paid net subscriber additions for the quarter and cited surveys suggesting rising advertiser adoption for Netflix’s ad-supported tier.
HSBC analyst Mohammed Khallouf also struck a more constructive tone, initiating coverage with a Buy rating and a $118 price target. Netflix shares are down 13% since the Warner deal announcement on Dec. 5, while the S&P 500 has risen 1.6% over the same period, Barron’s reported. “Yet we see scope for more tangible gains from potential revenue synergies,” Khallouf wrote, saying the deal could lift earnings per share by 2% to 4% in 2028 and 2029 if it closes. Barron’s
But there’s a clear downside case. Regulators could press Netflix on market power in streaming, and any bidding war risks pushing up the price — or forcing Netflix to rethink its willingness to pay — while Warner faces break costs if it walks from its existing agreement.
For now, traders are left with two near-dated catalysts that are harder than the day-to-day headline churn. Netflix reports results on Jan. 20 after the bell, and the next day brings Paramount’s Jan. 21 tender deadline for Warner — a calendar that could decide whether this turns into a real bidding contest or just loud bargaining.
