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Netflix has decided to revise its bid’s deal for Warner Bros. after the company shares, unusually dropped in the latest update.
The streaming pioneer and Netflix co-CEOs’ decision to plunk down nearly $83 billion on Warner Bros.’ assets, marks a significant departure from the company’s long-standing mantra, “build, don’t buy.”
However, investors still aren’t buying it.
As reported by Reuters, the company shares were already under pressure even before Netflix took the initiative to offer Warner Bros Discovery’s open new tab for studio and streaming assets.
The stock, which has lost more than 15% since Netflix made its first offer on December 5, 2025, was down nearly 4% in early trading on Wednesday, January 21, 2026, as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks.
Sarandos noted, how tech giants such as Alphabet’s open new tab YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up.
Netflix is trying to stay ahead of Paramount Skydance (opens new tab) with its $82.7 billion all-cash offer for Warner Bros.’ film and television studios, its extensive content library, and major entertainment franchises—including “Game of Thrones” and “Harry Potter.”
“We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority.”
“But now with Warner Bros., they bring a mature, well-run theatrical business with amazing films, and we’re super excited about that addition,” he said, in a reversal of Netflix’s former position that theaters were an outdated model with audiences preferring stay-at-home streaming.
“And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means,” Peters said, adding that Warner’s television studio was also a healthy business and complemented Netflix’s own, expanding its production capability.
Why are investors still not convinced for ‘Netflix-Warner Bros.’ deal?
With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters and forecast equally dull prospects for the new year.
While a strong content line-up, including the final season of hit sci-fi series “Stranger Things,” helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.
Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros.’ deal.
On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer.
The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.
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