New York, Jan 15, 2026, 12:16 EST — Regular session
- Netflix shares edged up as a Delaware judge refused to fast-track Paramount Skydance’s lawsuit connected to Warner Bros Discovery’s deal process
- The idea of an all-cash Netflix bid for Warner’s studios and streaming assets has resurfaced.
- Investors are eyeing Netflix’s Jan. 20 earnings report for insights and any updates on deals
Shares of Netflix (NFLX.O) ticked up 0.6% to $89.08 midday Thursday, as investors digested a Delaware court decision related to its planned buyout of Warner Bros Discovery’s studios and streaming units.
The ruling keeps the takeover battle alive, leaving timing and price uncertain. Traders are watching the stock closely, viewing it as a gauge of whether Netflix can pull off a game-changing deal without stumbling over politics, financing, or regulatory hurdles.
Next Tuesday brings Netflix’s quarterly results, adding pressure to an already busy week. The Warner process looms large, casting uncertainty over what might have been a straightforward earnings report.
Reuters reported this week that Netflix plans to shift its bid to an all-cash offer for Warner’s studios and streaming units, moving away from an earlier $82.7 billion cash-and-stock deal. Paramount Skydance (PSKY.O) is also in the race, pushing a $30-per-share all-cash bid for the entire company. Lawmakers have raised alarms about increased media consolidation, warning it could limit consumer choice and drive up prices. Netflix has agreed to pay a $5.8 billion termination fee if regulators block the deal, while Warner would owe $2.8 billion should it walk away. (Reuters)
On Thursday, Delaware Chancery Court Vice Chancellor Morgan Zurn denied Paramount Skydance’s bid to fast-track its lawsuit demanding more details about Warner’s decision to support Netflix’s offer. Paramount said it would continue pushing for disclosures, while Warner dismissed the lawsuit as a distraction. Its lawyer told the court, “This movie is still being shot.” Paramount’s tender offer—aimed at buying shares directly from shareholders—is set to expire on Jan. 21. No vote on the Netflix deal has been scheduled yet, according to the report. (Reuters)
Shares of Warner Bros Discovery slipped 0.2%, while Paramount Skydance dipped 0.7% in midday trading.
Analysts are revising forecasts ahead of earnings. TD Cowen’s John Blackledge downgraded his price target to $115 from $142 but maintained a Buy rating. He cited the firm’s ad-buyer research, which signals “incremental advertiser adoption,” and noted consumer survey data that kept Netflix leading in living-room viewing this quarter. (TipRanks)
The downside is clear. An all-cash deal might spark concerns over balance-sheet pressure. Plus, a lengthy regulatory review could drag out the Warner bid, weighing on the stock despite Netflix’s core business staying strong.
Netflix will release its fourth-quarter results and business outlook on Jan. 20 around 1:01 p.m. Pacific time, with a management video interview set for 1:45 p.m. Pacific time. (Netflix)
Next week’s numbers will draw investor attention to any update on the Warner bid, the outlook on advertising and margins, and how much room Netflix claims it has left for strategic spending.
