New York, February 24, 2026, 06:57 EST — Premarket
- Netflix picked up roughly 0.4% ahead of the bell, clawing back a bit after Monday’s 3.4% drop.
- Paramount Skydance has bumped up its bid for Warner Bros Discovery, turning up the heat on Netflix’s deal valuation.
- Regulatory risk has stayed in the spotlight as political chatter swirls around Netflix director Susan Rice.
Netflix traded around 0.4% higher at $76.33 before the bell Tuesday, following a 3.4% drop to $76.02 at Monday’s close.
Investors have zeroed in on Netflix’s Warner Bros. Discovery strategy as the stock’s key catalyst, with politics now swirling in the mix. Shares have tumbled roughly 20% this year, making each new deal headline hit a little harder.
Paramount Skydance has raised its offer for Warner Bros Discovery, hoping to scuttle the HBO Max parent’s agreement with Netflix, according to a source speaking to Reuters on Monday. The new bid, amount undisclosed, tops Paramount’s previous $30-per-share proposal. Netflix remains in with a signed $27.75-per-share offer covering WBD’s studios and streaming business, and still holds matching rights if a higher bid comes through, Reuters reported. Paramount’s earlier pitch included covering a $2.8 billion breakup fee payable to Netflix if WBD backs out, plus so-called “ticking fees”—additional payments if the deal drags. WBD shareholders are due to vote on the Netflix offer March 20. Reuters
The deal battle landed in the political spotlight after U.S. President Donald Trump took to Truth Social, calling for Netflix to fire director Susan Rice “or pay the consequences.” What those consequences might be, he didn’t specify. TechCrunch
Netflix co-CEO Ted Sarandos downplayed the significance on Monday, calling it “a business deal. It’s not a political deal,” during an interview with the BBC’s Today program. Sarandos pointed out the review is being handled by the U.S. Justice Department, as well as regulators internationally. Business Insider
Sarandos, in an SEC transcript, emphasized the company’s focus on sticking to its terms: “Our deal is super-simple — $27.75 cents a share plus the value of Discovery Global,” he said. He described the Hart-Scott-Rodino antitrust filing as little more than “turning in the homework,” stressing it’s not the same as an actual approval. Sarandos pointed to Nielsen’s “Gauge” report, noting Netflix’s share of TV viewing sits around 9%, bumping up to 10% if you add HBO. SEC
Away from the merger story, Netflix has another issue brewing in Britain. The UK government said Tuesday it would bring Netflix, Amazon Prime Video, and Disney+ under the same content and accessibility rules that TV broadcasters face, handing Ofcom authority to probe and enforce violations.
Shares pulled back Monday, part of a wider slump as traders grappled with tariff and policy jitters. The Dow shed roughly 1.7%, with the Nasdaq off 1.1% and the S&P 500 losing around 1.0%. Trump’s weekend announcement of increased global tariffs put extra pressure on markets, according to Investopedia.
Still, Netflix’s risk here circles back to the deal itself. If the bidding drags on, Netflix might end up shelling out more than shareholders bargained for. And if regulators dig in or the process crawls, the stock could just drift sideways for months.
Eyes are on WBD’s board for its next step, and traders want to see if Netflix will respond to Paramount’s higher bid before the March 20 shareholder vote. After that, April 21 looms, when Netflix is set to release earnings—a date that could shift focus back to its main business.
