Shares of Netflix closed Friday’s session at $78.67, marking a gain of 2.17%. However, this upward move belies the significant pressure the streaming giant is under. The company is currently embroiled in a high-stakes bidding contest for assets of Warner Bros. Discovery (WBD), with a critical deadline fast approaching. A window closing on February 23rd could determine the outcome of the proposed acquisition.
The Clock is Ticking for Warner Bros. Discovery
The situation escalated when Netflix granted WBD a temporary waiver on February 17th. This provision gives the latter a seven-day period to engage in negotiations with its rival, Paramount Skydance. The need for this window arose after Paramount presented an unsolicited bid for the entirety of Warner Bros. Discovery, creating uncertainty among WBD’s shareholder base.
In comments to CNBC, Netflix Co-CEO Ted Sarandos clarified the rationale. “Paramount created significant noise and flooded shareholders with confusion,” he stated. “We are now providing them with an opportunity to achieve absolute clarity and certainty.”
Competing Offers on the Table
Netflix’s current proposal is a cash offer of $27.75 per share, targeting WBD’s streaming and studio divisions, which include the prized HBO and HBO Max properties. Paramount’s counter-bid stands at $30 per share for the entire corporation. According to sources within WBD, a senior Paramount representative has informally signaled a potential increase to $31 per share should formal talks resume, indicating the final chapter in this saga has not been written.
A significant advantage for Netflix is its possession of a right of first refusal, allowing it to match any competing offer that emerges.
Should investors sell immediately? Or is it worth buying Netflix?
Shareholder Vote Looms in March
Warner Bros. Discovery has scheduled a special shareholder meeting for March 20th. The company’s board continues to unanimously recommend the transaction with Netflix. WBD CEO David Zaslav emphasized, “Our sole focus is on maximizing value and security for WBD shareholders. We have clearly demonstrated to Paramount at every stage where their proposals contain weaknesses.”
Not all major investors are aligned with the board’s position. Activist investor Ancora Holdings, which holds WBD shares valued at approximately $200 million, has publicly opposed the Netflix deal, expressing a preference for the Paramount offer.
Netflix Shares Face a Challenging Year
The equity of Netflix has come under considerable pressure in 2026. From the start of the year through mid-February, the stock declined by roughly 18%. It touched a new 52-week low of $75.23 on February 12th, a stark contrast to its all-time high of $133.91 reached in June of the previous year.
Trading volume on Friday reached 32.4 million shares, a figure that suggests heightened investor interest as the negotiations enter a decisive phase.
The Path Forward
The coming days are expected to bring clarity on whether Paramount will submit a formal, binding best-and-final offer. The response from Netflix, and its willingness to raise its bid, will then be closely watched. With the shareholder vote set for March 20th, the timeline is clear. For Netflix, the stakes extend far beyond acquiring a portfolio of streaming rights; a successful acquisition would fundamentally reshape its strategic position in the increasingly competitive battle for premium content.
Ad
Netflix Stock: Buy or Sell?! New Netflix Analysis from February 21 delivers the answer:
The latest Netflix figures speak for themselves: Urgent action needed for Netflix investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 21.
Netflix: Buy or sell? Read more here...
