Trump Withdraws from Netflix-Paramount Takeover Battle
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy WBD?
Source: seekingalpha
- Trump's Shift: In an interview with NBC News, Trump stated he would not participate in the takeover battle between Netflix and Paramount Skydance for Warner Bros. Discovery, marking a significant change from his previous stance two months ago, indicating he will let the Justice Department handle the matter.
- Market Share Insight: Trump previously noted that if Netflix acquired Warner Bros.' assets, its market share would significantly increase, although he did not specify figures; this potential growth has drawn economists' attention and could impact the competitive landscape in the industry.
- Acquisition Proposal Comparison: Netflix has made an offer to acquire Warner Bros. at an enterprise value of $82.7 billion, which has been backed by WBD's board, while Paramount has launched a hostile bid valued at over $108 billion, highlighting the fierce competition between the two companies in the market.
- Extended Deadline: Paramount recently extended the deadline for its acquisition proposal to February 20, demonstrating its firm commitment to the acquisition, which may also influence Netflix's acquisition strategy and further exacerbate market uncertainty.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.490
Low
14.75
Averages
24.98
High
30.00
Current: 27.490
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Streaming, Studios and Global Linear Networks. The streaming segment primarily consists of its premium pay-television and streaming services. The studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. The Global Linear Networks segment primarily consists of its domestic and international television networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- User Retention Strategy: Historically, Netflix has managed to retain most of its existing customers while attracting new ones despite price hikes, demonstrating its strong brand equity and extensive content library, a strategy that has proven effective during previous adjustments.
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- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
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- MLB Takes Over Media Distribution: As the 2026 MLB season commenced, the league announced it would take over media distribution for 14 teams, largely due to the gradual wind-down of Main Street Sports, which has undergone multiple ownership changes since its bankruptcy in 2019.
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See More
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- Cheniere Energy Price Target Increased: Citigroup raised Cheniere Energy's price target from $280 to $330 while reiterating its buy rating, as supply disruptions in the Middle East could benefit U.S. LNG exports long-term, with shares up about 17% since the war began.
See More
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- Price Increase Impact: Netflix has raised its U.S. subscription prices, with the standard and premium tiers increasing by $2 and the ad-supported tier by $1, reflecting a significant 28.6% rise for the ad-supported tier and 29.1% for the standard tier since October 2023, indicating a bold strategy to boost revenue while risking user attrition.
- User Attrition Risk: By increasing prices on lower-cost subscription tiers, Netflix risks driving users out of its ecosystem entirely, especially in a competitive streaming market where price sensitivity is high, potentially impacting the company's long-term growth prospects if users switch to more affordable alternatives.
- Confidence in Content Expansion: Netflix's strategy to enhance its value proposition through expanded content offerings, including sports, demonstrates its confidence in maintaining user loyalty despite inflationary pressures, which is crucial in the current economic climate where consumer spending is strained.
- Investment Appeal: Despite the challenges posed by price increases, Netflix's business model, which relies on high-margin recurring revenue and predictable cash flows, continues to attract investors, positioning the company as a relatively stable investment option amid economic uncertainty, reinforcing its status as a foundational holding in diversified portfolios.
See More
