Netflix Stock Declines Amid Warner Bros. Bid
Shares of Netflix (NASDAQ: NFLX) fell 11% in January 2026 as uncertainty swirled around its bid for Warner Bros. Discovery (NASDAQ: WBD). This drop follows a downward trend that began in October 2025 due to unexpected tax charges and rumors regarding the buyout. Investors are apprehensive about the implications of the deal, with Netflix’s revised all-cash offer of $82.7 billion being countered by a hostile bid from Paramount Skydance (NASDAQ: PSKY).
With Netflix’s share price trading 38% below its June 2025 all-time high, the situation remains precarious as investors are waiting for clarity regarding the Warner shareholders’ vote, which currently lacks a set date. If Netflix’s bid fails, they would incur a $5 billion breakup fee. The company is navigating a complex landscape, where both a potential merger and a hostile takeover could reshape its financial trajectory.
As of February 2, 2026, Netflix’s valuation ratios—33 times trailing earnings and 7.7 times sales—appear attractive to some despite ongoing volatility and investor uncertainty regarding future performance.
