New York, Feb 18, 2026, 11:38 (EST) — Regular session
- Netflix added roughly 0.7%, with speculation heating up over its Warner Bros. Discovery deal.
- Paramount has until Feb. 23 to come back to Warner and Skydance with its “best and final” offer, as directed by Warner.
- Investors are watching to see if Netflix ups its price — and how regulators handle that move.
Netflix (NFLX) climbed 0.7% to $77.56 during late-morning action Wednesday, trading in a range from $76.31 up to $77.84.
Netflix is facing a new wrinkle in its bid for major Warner Bros. Discovery assets, with Warner reopening negotiations with Paramount Skydance thanks to a waiver from Netflix. “Netflix is still in the driver’s seat, but now having to make its case,” wrote Raymond James media analyst Ric Prentiss. Los Angeles Times
Now, the prospect of a juicier offer means Netflix might have to either bump up its bid or walk away—there’s not much time left before Warner shareholders cast their votes. For Netflix investors, questions around price discipline, timing, and alternative uses for that cash if the deal falls through are back in focus.
Warner’s waiver gives the green light to talks with Paramount Skydance for a week, wrapping up on Feb. 23. Netflix still holds its matching rights per the merger deal — it can step in and meet any higher bid. “Our sole focus has been on maximizing value and certainty for WBD shareholders,” Warner CEO David Zaslav said. Warner Bros. Discovery
Netflix described its agreement as fully financed, emphasizing the waiver doesn’t alter the fact that it holds the only board-backed, signed deal. The company said Hart-Scott-Rodino filings are in, starting the U.S. antitrust review, and it’s in talks with regulators like the Justice Department.
Paramount has bumped up its offer, putting Warner’s value near $77.9 billion, the Wall Street Journal said. The proposal also covers a $2.8 billion breakup fee owed to Netflix should Warner back out. The Journal noted the Justice Department is looking into both deal scenarios.
Warner edged up roughly 0.5%. The S&P 500 tracker, SPY, gained about 0.8%, while QQQ, tracking the Nasdaq 100, posted a 1.2% advance.
Netflix has been handing out deal documents related to the Warner vote, according to a proxy-solicitation filing. That includes its most recent statement regarding the waiver.
The waiver’s a double-edged sword for Netflix. Should Paramount hike the price, Netflix might end up shelling out more, stuck waiting, or just walking away. Either way, regulators have room to drag things out, leaving deal risk hanging over the stock.
Paramount’s seven-day clock runs out Feb. 23—the next key date to watch. Once that passes, attention shifts to Warner, with its shareholder vote set for March 20. Investors will also be watching for signals in the antitrust timeline.
