New York, Feb 16, 2026, 16:44 EST — Market closed.
- Netflix shares last closed up 1.3% on Friday, before U.S. markets shut for Presidents Day.
- A report that Warner Bros may reopen talks with Paramount adds fresh uncertainty around Netflix’s proposed deal.
- Investors are watching for any response from Netflix and for key U.S. data later this week.
Netflix (NFLX.O) shares will be in focus when U.S. trading resumes on Tuesday after a report that Warner Bros Discovery (WBD.O) is weighing renewed talks with Paramount Skydance, a move that could complicate Netflix’s proposed acquisition of key Warner assets. (Reuters)
U.S. markets were closed on Monday for Presidents Day, delaying any immediate price reaction and pushing the next read on risk appetite into the first regular session of the week. (AP News)
The stakes are outsized for Netflix because the Warner deal has become the main swing factor in its 2026 equity story — not subscriber adds or a slate launch, but whether the company can close, finance and defend the transaction against rivals and regulators. (Reuters)
Netflix last closed up 1.3% at $76.87 on Friday, according to trade data, after a choppy week for large-cap growth names. (Yahoo Finance)
Bloomberg News reported on Sunday that Warner Bros is considering whether Paramount’s updated proposal offers a better path, even as it has an existing pact with Netflix, according to a Reuters report. (Reuters)
Paramount’s revised offer keeps its headline price but adds a 25-cent-per-share quarterly “ticking fee” starting in 2027 — essentially a make-whole payment if a deal drags — and includes a commitment to cover a $2.8 billion breakup fee that Warner would owe Netflix if it walked away. A breakup fee is a penalty paid when a party terminates a signed deal. (Reuters)
For Netflix, the renewed maneuvering risks either a higher bill — if it has to sweeten terms to keep Warner’s board aligned — or a prolonged limbo that keeps the stock trading on deal headlines rather than operating metrics.
There is also the “what if it doesn’t clear” problem. U.S. regulators have already been scrutinizing the proposed tie-up, and any widening review could stretch timelines and raise financing uncertainty, traders say. (Reuters)
Netflix has previously said it paused share buybacks as it built cash for the Warner transaction, underlining how the deal can crowd out other shareholder-return levers if conditions tighten. (Reuters)
A downside scenario is straightforward: Warner’s board engages with Paramount, Netflix refuses to raise its bid, and the process turns into a public fight that delays closure and forces investors to handicap legal and antitrust outcomes. Even if Netflix wins, it could do so at a higher cost.
Near-term, investors will be watching Paramount’s tender-offer timetable and any signals from Warner’s board about next steps, with a shareholder vote on the Netflix pact expected later this spring. (Reuters)
Beyond the deal, macro catalysts could jolt rate-sensitive growth stocks this week, including the next U.S. core PCE inflation release due Feb. 20, and Federal Reserve communications around the January meeting minutes schedule. (Bureau of Economic Analysis)
