NEW YORK, Feb 19, 2026, 19:04 EST — After-hours
- Netflix shares slipped roughly 1.3%, finishing just above $77 after hours.
- Investors watched for any indication Netflix might raise its Warner Bros offer if pushed.
- Paramount’s next step is in focus for traders, with a Monday deadline looming.
Netflix, Inc. dropped 1.27% during regular hours, with the stock hovering close to $77 in Thursday’s after-hours session. Investors digested new developments in the company’s ongoing dispute with Paramount Skydance about Warner Bros Discovery.
This takeover fight is grabbing attention, with Netflix shares reacting more to deal chatter than to their lineup or user growth. If the bid creeps higher, Netflix might suddenly find itself needing more cash. And dragging things out ups the odds regulators get involved—fast.
Investors have their eyes on the calendar. Paramount faces a Monday cutoff to deliver its “best and final” bid. Netflix, meanwhile, holds matching rights per the Warner agreement, giving it the option to match any competing offer.
Netflix is bidding $27.75 a share—totaling $82.7 billion—for Warner’s studio and streaming arms, according to two sources cited by Reuters. Paramount’s rival offer stands at $30 a share, or $108.4 billion, and covers the entire company, Discovery Global cable assets included. “Price will likely be the deciding factor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. Reuters
Even with a richer offer on the table, Warner hasn’t wavered from its support of Netflix’s deal, pointing to worries over how Paramount would fund its bid and navigate regulatory approval. “Board-level concerns around financing structure, timing and regulatory approval meaningfully detract from the attractiveness of Paramount’s proposal,” said Paren Knadjian, partner at Eisner Advisory Group. MarketScreener
Regulatory uncertainty persists. According to Bloomberg News, the U.S. Justice Department has called in executives from leading theater chains for closed-door talks, reportedly raising concerns over the impact of a potential Warner sale on moviegoers and the possibility of trimmed theatrical releases. Reuters was unable to confirm the Bloomberg report independently.
Netflix shares slipped, part of a broader pullback across U.S. equities. The S&P 500 fell 0.28%, while the Nasdaq shed 0.31%. Traders kept an eye on upcoming inflation data, especially the personal consumption expenditures price index—closely watched by the Federal Reserve.
Netflix’s 10-for-1 stock split wrapped in November, lifting the number of shares while bringing down the stock’s headline price.
The setup has its risks for both sides. Should Paramount decide to significantly boost its offer, Netflix might get pulled into a bidding fight that strains investor patience with added leverage and a potentially drawn-out antitrust review. Or Netflix could just step away, and the shares would revert to trading on fundamentals, deal premium gone.
Looking forward, all eyes on Paramount as its deadline hits Monday. Then it’s Warner’s turn, with shareholders voting March 20 on the Netflix agreement. If regulators budge on timing, NFLX would reflect it almost instantly.
