Netflix has recently experienced a significant decline in its shares, despite reporting positive financial results shortly after simplifying its offer for Warner Bros in an effort to finalize the deal. The streaming giant, with the largest number of subscribers worldwide, announced that paid households had reached a record high of 325 million in the last quarter of 2025, up from 300 million the previous year. Additionally, fourth-quarter revenues totaled $12.1 billion, surpassing analyst expectations.
However, the stock price fell by 5% in after-hours trading following a lackluster performance earlier in the day. Analysts attributed this drop to Netflix’s forward-looking revenue and profit guidance falling short of expectations, particularly amidst concerns surrounding its bid for Warner Bros.
Netflix disclosed that it had revised the terms of its $72 billion offer for Warner Bros Discovery’s studios, back catalog, and HBO Max streaming division. The updated bid, now consisting solely of cash and no longer including Netflix shares, was welcomed by Warner Bros Discovery and aimed to streamline the acquisition process.
In a joint statement, Netflix and Warner Bros Discovery emphasized that the modified offer simplifies the purchase, provides greater certainty of value for Warner Bros Discovery stockholders, and accelerates the timeline for stockholder voting on the proposal. During a conference with analysts, Netflix’s co-chief executive expressed confidence in securing regulatory approvals globally and affirmed that the deal could undergo a shareholder vote in April.
In contrast, Paramount Skydance presented a competing bid to acquire the entirety of Warner Bros Discovery for $108.4 billion, which was rejected by the company. Paramount argued that its offer delivered superior value, while Warner Bros Discovery cited deficiencies in the proposal. Paramount’s tender offer, allowing Warner Bros Discovery shareholders to show their support, is set to expire soon but is likely to be extended.
Paramount may opt to revise its terms or strategy, as evidenced by its intention to launch a proxy fight to replace Warner Bros Discovery’s board with directors supportive of its bid. This tactic signifies Paramount’s commitment to securing the deal in its favor.
Overall, the developments surrounding Netflix’s bid for Warner Bros Discovery and the ensuing competitive bids from Paramount Skydance highlight the intense competition and strategic maneuvers within the streaming and entertainment industry. The outcome of these negotiations will shape the landscape of the sector in the coming months.
SOURCE