New York, Feb 23, 2026, 11:04 AM EST — Regular session
- Netflix shares fell about 3.5% in late morning trade.
- Investors are bracing for a rival bid deadline in the Warner Bros. Discovery deal.
- A U.S. antitrust review is adding fresh timing risk.
Netflix shares fell 3.5% to $75.89 on Monday, extending a recent slide as investors weighed deal uncertainty and a risk-off tone across U.S. equities.
The move comes as markets digest fresh trade-policy headlines and the next turn in Netflix’s agreed transaction for Warner Bros. Discovery assets. The question for traders is whether the deal stays on its current track — and at what price. (Investopedia)
Warner Bros. Discovery’s board has given rival suitor Paramount Skydance until the end of Monday to submit an updated offer, keeping Netflix’s bid in play but leaving room for a late twist. (Business Insider)
Netflix, in a regulatory filing on Monday, published a transcript of co-CEO Ted Sarandos’ Feb. 20 interview in which he cast Paramount’s push as “noise” and argued the Netflix offer was “super-simple.” (SEC)
Variety reported Paramount’s revised offer was expected to come in higher, a scenario that could force Netflix to decide whether to improve terms or walk away. (Variety)
Regulatory risk has also sharpened. The U.S. Justice Department’s Antitrust Division has opened an investigation into Netflix’s proposed deal for Warner’s studio and streaming assets and is seeking documents and sworn responses, TheWrap reported. (TheWrap)
Bloomberg reported the review has included questions about Netflix’s leverage over creators and how its practices could shape bargaining power after a tie-up with Warner. (Bloomberg)
Sarandos, speaking publicly on Monday, defended the transaction as pro-growth for the industry and attacked Paramount’s approach as a traditional media merger built on heavy cuts, the Guardian reported. (The Guardian)
But the downside case is easy to sketch: a higher rival bid could raise the cost of any deal, while an extended antitrust fight could drag out closing timelines and keep a lid on Netflix’s valuation. Public pressure is also rising, with high-profile critics urging Washington to scrutinize the tie-up. (Ew)
Investors are watching for any late-day update on Paramount’s offer and the next steps from Warner’s board, along with the pace and scope of the DOJ review. Warner has set a March 20, 2026 special meeting for shareholders to vote on the Netflix merger. (Discovery)
