Netflix Shares Pop More Than 5% As Warner Deliberates Next Steps

Variety

by Brian Steinberg

February 25, 2026

AI-Generated Deep Dive Summary

Netflix shares surged by over 5% in Wednesday trading following news that Warner Bros. Discovery (WBD) had received an updated offer from Paramount Skydance, potentially challenging its existing merger deal with Netflix. The stock reached $82.23 per share, marking a significant rise from Tuesday's close of $78.04. With a trading volume of around 35 million shares, the market responded positively to the developments surrounding WBD's strategic decisions. Warner had previously agreed to sell its HBO Max streaming platform and associated studios to Netflix for approximately $83 billion. However, the revised offer from Paramount Skydance, valued at $31 per share in cash, has prompted WBD's board to reconsider whether this proposal could be more favorable than the deal with Netflix. The board emphasized that no decision has been made yet, indicating they will engage further with Paramount to evaluate if a "superior proposal" can be achieved. The situation highlights the competitive dynamics of the streaming industry and the potential implications for content distribution. If WBD deems the Paramount offer superior, Netflix would have four business days to negotiate any changes to the existing merger agreement. Additionally, Paramount's willingness to accelerate certain financial terms, such as a "ticking fee," adds complexity to the negotiations. This development underscores the high stakes involved in major mergers and how they can reshape the entertainment landscape. The outcome will likely influence not only Netflix and Warner but also other players in the streaming sector, potentially affecting content availability and market competition. Readers interested in entertainment and media trends should closely monitor these proceedings, as they could set a new precedent for future deals.

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Originally published on Variety on 2/25/2026