New York, Feb 18, 2026, 11:38 (EST) — Regular session
- Netflix shares up about 0.7% as deal headlines swirl around its Warner Bros. Discovery agreement
- Warner gave Paramount Skydance until Feb. 23 to deliver a “best and final” proposal
- Investors eye whether Netflix raises its price and how regulators respond
Netflix (NFLX) shares rose 0.7% to $77.56 in late-morning trade on Wednesday, after swinging between $76.31 and $77.84.
The move follows a fresh twist in Netflix’s push to buy key Warner Bros. Discovery assets, after Warner reopened talks with Paramount Skydance under a waiver granted by Netflix. “Netflix is still in the driver’s seat, but now having to make its case,” Raymond James media analyst Ric Prentiss wrote. (Los Angeles Times)
It matters now because any richer bid could force Netflix to sweeten its offer or step aside, with little time before Warner shareholders vote. For Netflix investors, it puts the spotlight back on price discipline, timing, and what the company would do with its cash if the deal slips.
Warner said the waiver lets it engage with Paramount Skydance for seven days, ending Feb. 23, while Netflix keeps matching rights — the right to match a superior offer — under the merger agreement. Warner’s CEO David Zaslav said, “Our sole focus has been on maximizing value and certainty for WBD shareholders.” (Warner Bros. Discovery)
Netflix, in a statement, called its agreement fully financed and said the waiver does not change that it has the only signed, board-recommended deal. It said it has filed Hart-Scott-Rodino paperwork, which kicks off the U.S. antitrust review process, and is engaged with regulators including the Justice Department. (Netflix)
Paramount’s sweetened proposal values Warner at about $77.9 billion and includes paying a $2.8 billion termination fee Netflix would collect if Warner walks away, the Wall Street Journal reported. The paper said the Justice Department is reviewing both paths. (The Wall Street Journal)
Warner shares were up about 0.5% on the day. The broader market was higher too, with the S&P 500 tracker SPY up about 0.8% and the Nasdaq 100 tracker QQQ up about 1.2%.
A proxy-solicitation filing showed Netflix has been distributing deal materials tied to the Warner vote, including its latest statement around the waiver. (SEC)
But the waiver cuts both ways for Netflix. If Paramount pushes the price up, Netflix could face pressure to pay more, wait longer, or walk — and regulators could stretch the timeline in either scenario, keeping deal risk in the stock.
The next test is Feb. 23, when Paramount’s seven-day window expires. After that, investors turn to Warner’s March 20 shareholder vote and any read-through on the antitrust calendar.
