New York, Feb 18, 2026, 18:58 (EST) — After-hours
Netflix (NFLX.O) shares rose 1.2% to $77.99 in Wednesday’s regular session and were little changed after hours, with deal risk back in the frame. Bloomberg News reported the U.S. Justice Department had approached major theater chains about the potential impact of the Warner Bros transaction. (Reuters)
The timing matters. Netflix’s bid for Warner Bros Discovery’s studio and streaming assets is shifting from headline warfare into a vote-and-regulators stretch, where filings and procedural deadlines start to drive the tape.
For Netflix, the upside is obvious: a deeper library and a second premium streaming brand. The downside is just as clear — a prolonged antitrust review and a live rival bid that could force a rethink on price or walking away.
Netflix said Warner Bros has filed and begun mailing its definitive proxy statement — the document sent to shareholders ahead of a vote — for a March 20 special meeting. Netflix reiterated the deal is fully financed and described it as a largely vertical merger, while saying both companies have made Hart‑Scott‑Rodino filings, the U.S. premerger antitrust notification, and are engaging competition authorities in the United States and abroad. (About Netflix)
Warner Bros rejected Paramount Skydance’s latest $30-a-share hostile offer on Tuesday but opened a short window for talks on a higher bid, while continuing to back the Netflix agreement. Paramount has offered to cover a $2.8 billion breakup fee — a penalty paid if Warner Bros terminates the Netflix deal — and Netflix can match any new offer, Warner Bros said. Warner Bros chairman Samuel DiPiazza Jr and CEO David Zaslav wrote: “We continue to recommend and remain fully committed to our transaction with Netflix,” while PP Foresight analyst Paolo Pescatore said, “Time is running out for Paramount.” (Reuters)
Away from M&A, Netflix is also trying to show momentum on live programming. The company announced a live MMA bout between Ronda Rousey and Gina Carano scheduled for May 16 at Intuit Dome in Los Angeles, its first foray into mixed martial arts, with vice president of sports Gabe Spitzer saying Netflix “wanted our first MMA event to be truly legendary.” (People)
The broader tape helped on Wednesday. Wall Street ended higher, with the S&P 500 up 0.56% and the Nasdaq gaining 0.78%, as megacap tech rebounded and risk appetite steadied. (Reuters)
But the path is not clean. Regulators could dig in on theatrical distribution and consumer pricing, and any credible topping bid risks turning this into a price contest that leaves Netflix paying more — or explaining why it didn’t.
Traders now look to the next hard markers: Paramount’s Feb. 23 deadline to submit a higher proposal and the March 20 shareholder vote at Warner Bros. Any fresh regulatory signals could land before Thursday’s open and jolt a stock that has been trading on deal headlines as much as fundamentals. (Theverge)
