New York, Feb 18, 2026, 18:58 (EST) — Trading has moved into after-hours.
Netflix (NFLX.O) closed up 1.2% at $77.99 on Wednesday, barely moving in late trading as investors weighed fresh uncertainties around the pending deal. According to Bloomberg News, the U.S. Justice Department has reached out to large theater operators to discuss what the Warner Bros transaction could mean for the industry. 1
Timing is key here. Netflix’s pursuit of Warner Bros Discovery’s studio and streaming pieces has moved past headline skirmishes—now, the focus is on votes and regulatory reviews. Procedural deadlines and filings are what’s moving the tape at this stage.
Netflix stands to gain a bigger content vault and another top-tier streaming name. But there’s a catch: a lengthy antitrust process looms, plus there’s an active competing bid. That could push Netflix to reconsider what it’s willing to pay, or even back out.
Netflix said Warner Bros has now filed and started mailing its definitive proxy statement, the key document shareholders get before they vote, ahead of the March 20 special meeting. The company again emphasized the deal is fully financed, calling it mostly a vertical merger. Both firms, according to Netflix, have filed their Hart‑Scott‑Rodino antitrust notifications and are talking with competition regulators in the U.S. and internationally. 2
Warner Bros has shot down Paramount Skydance’s $30-a-share hostile approach as of Tuesday, but left the door open for a brief round of negotiations on a bigger offer. The company remains in Netflix’s corner for now. Paramount committed to covering a $2.8 billion breakup fee—should Warner Bros abandon the Netflix deal. Warner Bros also noted Netflix holds matching rights on any new proposal. In a statement, chairman Samuel DiPiazza Jr and CEO David Zaslav said, “We continue to recommend and remain fully committed to our transaction with Netflix.” Analyst Paolo Pescatore of PP Foresight didn’t mince words: “Time is running out for Paramount.” 3
Outside of M&A, Netflix is making moves in live content, too. The company said it’s bringing a live MMA fight between Ronda Rousey and Gina Carano to the Intuit Dome in Los Angeles on May 16. It’s Netflix’s initial entry into the MMA arena. “We wanted our first MMA event to be truly legendary,” vice president of sports Gabe Spitzer said. 4
Stocks pushed higher Wednesday. The S&P 500 closed up 0.56%, while the Nasdaq rose 0.78%. Megacap tech bounced back, and risk sentiment found some footing. 5
It’s hardly a smooth ride. There’s a chance regulators start poking around theatrical release terms and ticket costs, while a serious rival offer could spark a bidding war. That scenario might force Netflix to shell out extra, or justify walking away.
Eyes shift to Paramount’s Feb. 23 cutoff for a higher bid, with Warner Bros. shareholders set for a key vote on March 20. Fresh regulatory news could easily hit before Thursday’s bell, setting off fresh moves in a stock already whipsawed by deal chatter and not just the usual fundamentals. 6
