New York, February 18, 2026, 14:26 EST — Regular session
- Netflix climbed roughly 1.1% in afternoon trading as investors zeroed in again on its Warner Bros deal.
- Paramount faces a Feb. 23 deadline to put forward its “best and final” bid for Warner Bros, leaving Netflix’s offer hanging in the balance this week.
- Deal price, the likelihood of financing coming through, and potential regulatory hurdles are all on investors’ minds.
Netflix (NFLX.O) climbed 1.1% to $77.89 during Wednesday afternoon’s session, with investors bracing for a flurry of deal news tied to the streaming giant’s agreement to buy Warner Bros assets.
Right now, timing is the real snag—not Netflix’s subscriber count. If a competing offer for Warner appears, Netflix may need to bump up its bid or bow out. Either way, that decision hits the pile of cash Netflix has set aside for content spending and shareholder payouts.
Time’s running out. Paramount faces a Feb. 23 deadline to send what Warner is labeling a “best and final” proposal—hardly any room left for extra diligence. Every board letter and filing now has the potential to move markets.
Shares of Warner Bros Discovery (WBD.O) slipped 0.3% Wednesday. Netflix barely budged, bouncing between $76.31 and $78.29 for the session.
Warner on Tuesday shot down Paramount Skydance’s latest $30-a-share hostile bid—the board isn’t backing the deal—but gave Paramount a one-week window to bring a new offer. Netflix, under the terms, gets a chance to match. “Time is running out for Paramount with this saga wrangling on,” said PP Foresight’s Paolo Pescatore. Netflix, for its part, said it’s “confident” its proposal delivers “superior value and certainty.” 1
Several shareholders want to see a bigger figure. Matt Halbower, CEO at Pentwater Capital, told Reuters he thinks Paramount has satisfied the board’s main concerns. Harris Oakmark’s Alex Fitch, a partner there, commented that both bidders could still give Warner shareholders a better deal.
Jargon in the bids isn’t just noise. Paramount says it’s ready to pick up the breakup fee—essentially, what Warner would owe Netflix if the agreement falls apart. Over at Warner, board members have zeroed in on unresolved issues, especially around who shoulders specific financing expenses if the debt piece gets shaky.
Regulators remain a big variable here. Paramount and Netflix both say they’re talking with competition authorities—including the U.S. Department of Justice—about their plans. Reuters has also noted that Warner’s deal could run into stiff regulatory scrutiny, especially over how it might affect consumer prices and creators.
Netflix bulls see a straightforward “win”: If Paramount doesn’t up its bid, the flurry of headlines dies down and the company wraps its intended deal—no extra cost.
Still, it’s a messy road. If a higher bid emerges, that risks sparking a price war; meanwhile, uncertainty over financing might unsettle investors. There’s also the regulatory piece — potential delays or changes that could drag out the process and ramp up expenses.
On deck is Paramount’s Feb. 23 cutoff for an updated bid, plus whatever Netflix decides to do next. After that, eyes turn to Warner, where the Netflix merger faces a shareholder vote on March 20. 1
