Netflix shares traded essentially unchanged on Friday, hovering near $75.90, as investors weighed new complications for a potential strategic deal with Warner Bros Discovery. A Reuters report indicated a significant Warner shareholder is pushing the board to consider negotiations with Paramount instead, potentially derailing or delaying an agreement with the streaming giant.
The proposed Warner transaction is viewed as crucial for Netflix, aimed at bolstering its content library and expanding its business reach. The company has paused its share buyback program to conserve cash for the deal, a move closely watched by investors for signals about financial strategy. A proxy fight at Warner could prolong the process and force revisions to terms.
Adding to the narrative, regulatory filings revealed recent stock sales by Netflix executives. Co-CEO Greg Peters disposed of 27,312 shares on February 10, while Chief Global Affairs Officer Cletus Willems sold 3,136 shares. While such sales can be part of routine financial planning, they often draw heightened scrutiny during periods of stock price pressure and major corporate developments.
Broader economic data provided context for the trading session. The U.S. Labor Department reported consumer prices rose 0.2% in January, with the core CPI, excluding food and energy, increasing 0.3%. Treasury yields edged lower following the release, which some analysts viewed as supporting the case for interest rate cuts later this year.
Netflix's stock had declined nearly 5% in the previous session amid a broad market sell-off. The focus has now shifted squarely to deal dynamics, with key dates ahead. Warner Bros Discovery is expected to hold a shareholder vote on the Netflix pact in March, while a competing tender offer from Paramount runs until February 20. Traders are monitoring for regulatory signals and whether activist investors formalize a proxy challenge.
