New York, Feb 19, 2026, 15:51 (EST) — Regular session
Netflix, Inc. shares fell 1.6% to $76.73 in afternoon trading on Thursday, as investors weighed a fresh round of deal pressure tied to its bid for Warner Bros. Discovery’s studios and streaming business. Warner Bros. Discovery and rival bidder Paramount Skydance also traded lower.
Netflix has the cash to raise its $27.75-a-share offer if Paramount Skydance sweetens its competing proposal, two people with knowledge of the matter said. Paramount has offered $30 a share for the full company, and Warner’s board has set a Feb. 23 deadline for a “best and final” bid, with Netflix holding matching rights — a clause that lets it meet a rival offer. “Price will likely be the deciding factor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. (Reuters)
Regulatory scrutiny added another layer of uncertainty. Bloomberg News reported the U.S. Justice Department has held private conversations with major theater chains about whether a sale of Warner could mean fewer films reach cinemas, a concern that has long dogged streaming-first distribution. Warner Bros. Discovery and the DOJ did not immediately respond to requests for comment, Reuters reported. (Reuters)
Warner said it will hold a special shareholder meeting on March 20 to vote on the Netflix merger and that Netflix has granted a limited waiver allowing talks with Paramount Skydance through Feb. 23. Warner CEO David Zaslav said the board was seeking “an actionable, binding proposal,” while chair Samuel A. Di Piazza Jr. said the Netflix deal offered a “clear path” to regulatory approval. (PR Newswire)
Warner rejected Paramount’s latest $30-a-share approach this week, but told Paramount it had not determined the proposal was “reasonably likely” to result in a deal superior to Netflix’s. “Time is running out for Paramount,” PP Foresight analyst Paolo Pescatore said, as Warner said it expected any credible offer to land above $31 a share and estimated the value of its planned Discovery Global cable spinoff at $1.33 to $6.86 per share. (Reuters)
In a filing, Netflix said it and Warner have submitted Hart-Scott-Rodino filings — the U.S. pre-merger antitrust paperwork — and are engaging with competition authorities including the DOJ, state attorneys general, the European Commission and the UK’s Competition and Markets Authority. Netflix described the transaction as “a largely vertical merger,” meaning it links complementary assets rather than combining direct rivals, and argued Paramount’s bid would draw heavier regulatory questions. (SEC)
But the bidding could still turn costly. If Paramount forces a higher price, Netflix may have to show investors why owning a larger studio-and-streaming footprint is worth more cash out the door, at a time when regulators and theaters are already watching the knock-on effects.
The next catalyst is whether Paramount meets the Feb. 23 deadline with a revised offer and whether Netflix counters, ahead of Warner’s March 20 shareholder vote. Traders will also watch for any clearer signs the DOJ is moving from informal inquiries to a more formal review process. (Wbd)
