New York, Feb 16, 2026, 16:44 EST — The market’s finished for the day.
- Netflix ended Friday up 1.3%, with markets set to close for Presidents Day in the U.S.
- Fresh uncertainty hit Netflix’s proposed deal after a report suggested Warner Bros might return to the table with Paramount.
- Markets are on alert for a move from Netflix, with attention also turning to major U.S. data expected later this week.
Netflix (NFLX.O) is set to draw attention on Tuesday as U.S. trading kicks back in, after word surfaced that Warner Bros Discovery (WBD.O) may be considering another round of talks with Paramount Skydance—a twist that threatens to muddle Netflix’s plans to buy major Warner assets. 1
With U.S. markets shut for Presidents Day on Monday, any initial moves were put on ice, leaving traders waiting for the first normal session of the week to gauge risk appetite. 2
Netflix’s 2026 outlook now hinges on the Warner deal. It’s not about subscription growth or the lineup debut this time. The real question is whether Netflix can get the deal over the finish line, line up funding, and ward off competitors and regulatory hurdles. 1
Netflix finished Friday up 1.3% at $76.87, trade data show, wrapping a turbulent week for big growth stocks. 3
Bloomberg News said Sunday that Warner Bros is weighing Paramount’s revised offer, despite already having a deal in place with Netflix, Reuters reported. 1
Paramount stuck with its original bid, but this time threw in a 25-cent-per-share quarterly “ticking fee” beginning in 2027—a kind of insurance payout if the process drags out—and guaranteed it would handle the $2.8 billion breakup fee Warner faces if it backs out of its deal with Netflix. That breakup fee covers penalties when a signed agreement gets scrapped. 1
Netflix faces two big risks here: it could end up shelling out more if it needs to improve its offer to satisfy Warner’s board, or it might get stuck in a holding pattern, with its stock moving on deal chatter instead of business fundamentals.
Then comes the risk that the deal doesn’t get cleared at all. U.S. regulators are already looking closely at the merger, and traders point out that if the review drags out any further, it could complicate financing and delay the process. 4
Netflix shelved its share buyback program while it stockpiled cash for the Warner deal, signaling that this kind of acquisition might squeeze out other ways to return money to investors if things get tough. 5
If Warner’s board starts talks with Paramount and Netflix stands pat on its offer, things could quickly sour. The deal might drag into the open, stirring up legal and antitrust hurdles for investors to calculate. And if Netflix does end up on top, it may have to pay more than expected.
In the short run, eyes turn to Paramount’s tender offer schedule and whatever cues emerge from Warner’s board about what’s next. A shareholder vote on the Netflix deal is still on deck for later this spring. 6
Outside the deal, there’s plenty on the calendar that could shake up rate-sensitive growth names this week. The next U.S. core PCE inflation numbers hit Feb. 20, and investors will be watching for any fresh signals from the Fed as the January meeting minutes drop. 7
