Netflix’s Share Price Drops Post-Warner Bros. Acquisition Announcement
Netflix’s share price fell 18% in 2026 through February 13, reaching a 52-week low of $75.23, following its announcement of a deal to acquire a portion of Warner Bros. Discovery. The company, which has taken on significant debt to fund the purchase, is estimated to face around $85 billion in combined debt if the acquisition is successful.
Controversy surrounds the deal, with activist investor Ancora Holdings urging Warner Bros. Discovery to reject the Netflix bid in favor of a competing offer from Paramount Skydance. Regulatory challenges may further complicate matters, as government approval could view the merger as detrimental to competition. If the acquisition fails, Netflix could be liable for a $5.8 billion breakup fee.
Despite these challenges, Netflix reported a 16% increase in revenue year-over-year, reaching $45.2 billion in 2025, and has over 325 million paid subscribers. Analysts view the stock’s current valuation as attractive, potentially positioning it as a buy for long-term investors.
