Warner Bros. Plans to Reject Paramount's Revised Takeover Bid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy NFLX?
"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:The most notable new content to watch on streaming this weekend is the two-hour finale of Netflixseries "Stranger Things," which became available on New Year's Day. Netflix subscribers can also catch thriller miniseries "Run Away," adapted from a novel by Harlan Coben and starring James Nesbitt.WARNER BROS./PARAMOUNT:plans to reject a revised takeover bid from Paramount Skydance, people familiar with the matter told Bloomberg's Lucas Shaw earlier this week, echoing earlier reporting from CNBC's David Faber. The Warner Bros. board hasn't made a final determination, but will meet next week, according to Bloomberg's report. Among the board's concerns is that Paramount Skydance has not yet updated its offer, which Warner Bros. previously dismissed as inferior to one from Netflix, the author noted.AMC "STRANGER THINGS":On Friday, AMC EntertainmentCEO Adam Aron said that screenings of Netflix's "Stranger Things" finale in 231 of its U.S. theaters on New Year's Eve and New Year's Day was "nothing less than an absolute triumph," with the theater operator collecting more than $15M in just two days from the showtimes."This unprecedented theatrical event was nothing less than an absolute triumph," Aron said. "In addition to the countless millions of people who will enjoy Stranger Things on the Netflix streaming platform, in just two days, more than 753,000 Stranger Things fans flocked to an AMC Theatre to personally join in the celebration. AMC had slightly more than one-third of the total theatre count showing the Stranger Things series finale, and AMC estimates that more than half of all Stranger Things fans who saw the series finale in a movie theater did so at an AMC. Consumer demand was so high that AMC repeatedly and exponentially added thousands of additional showtimes across its participating locations. In the end, AMC had more than nine times the available seating capacity allocated to Stranger Things than was originally envisioned. The admissions price was free, but required the mandatory purchase of a $20 per-person food and beverage credit. As a result, AMC collected more than $15.0 million in just two days from Stranger Things showtimes. At AMC, our company is excited about the prospect of taking more Netflix content to theatre goers, and I might add that the working relationship between the two companies in our two recent projects has been easy, creative, and seamless."NETFLIX NFL GAMES:Meanwhile, Netflix said on Wednesday that its second NFL Christmas Gameday contest between the Detroit Lions and Minnesota Vikings became the most-streamed NFL game in U.S. history with an average of 27.5M viewers in the U.S., with US viewership peaking at over 30M viewers, according to Nielsen Big Data + Panel. The Cowboys-Commanders game averaged 19.9M US viewers. Netflix has now distributed the top three most-streamed NFL games in U.S. history, the company said. Snoop Dogg's Holiday Halftime Party in the Lions-Vikings game brought in an average of 29M viewers in the US, according to Nielsen Big Data + Panel. Viewers from over 200 countries and territories tuned in to at least one of the games, with the Cowboys-Commanders drawing a 22.4M global AMA and the Lions-Vikings garnering a 30.5M global AMA. This year, NFL Christmas Gameday drove more than 632M global owned social impressions, with Snoop's Holiday Halftime Party driving over 100M impressions on Christmas Day. Additionally, Lions-Vikings was the most socially consumed sporting event on Christmas Day.STOCK PLAYS:Other publicly traded companies in the space include Disney, AmazonApple, FuboTV, Comcast, Fox, Roku, and AMC Networks.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
10 Hold
1 Sell
Moderate Buy
Current: 95.550
Low
92.00
Averages
114.18
High
150.00
Current: 95.550
Low
92.00
Averages
114.18
High
150.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
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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- Traffic and Engagement Boost: EverPass Media CEO Alex Kaplan stated that the fight will provide reliable access for streaming customers, which is expected to significantly drive traffic and user engagement, thereby enhancing the platform's competitive edge.
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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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- User Growth Potential: By the end of 2025, Netflix's global subscriber base grew to 325 million, an increase of 25 million from the previous year, and the new subscription prices are expected to further enhance user retention and market share.
- Market Reaction Expectations: Wall Street analysts generally believe that the price hikes will positively impact Netflix's revenue, with JPMorgan estimating an additional $1.7 billion in annual revenue, although much of this increase is already factored into the 2026 guidance.
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- 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.
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- 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.
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- Fight Streaming Agreement: Netflix has partnered with EverPass Media to stream the Tyson Fury vs. Arslanbek Makhmudov fight on April 11, 2026, at Tottenham Hotspur Stadium in London, marking a significant expansion of Netflix's presence in sports broadcasting.
- Global Accessibility: The event will be available for streaming globally on Netflix, while U.S. commercial establishments can access it via the EverPass platform, aiming to attract a broader audience and enhance user engagement.
- Traffic and Engagement Boost: EverPass Media CEO Alex Kaplan stated that the fight will provide reliable access for streaming customers, which is expected to significantly drive traffic and user engagement, thereby enhancing the platform's competitive edge.
- Strategic Implications: This collaboration not only highlights Netflix's ambitions in the sports content arena but also potentially paves the way for more live sports events in the future, further solidifying its leadership position in the streaming market.
See More
Netflix Raises Prices Again: Implications for Investors
- Price Increase Impact: Netflix has raised prices across all subscription options by $1 to $2, which may not please consumers; however, the company typically retains low churn rates, and this price hike is expected to have a slightly positive impact on financial results.
- Market Competition Strategy: By introducing a low-cost ad-supported tier and charging for password sharing, Netflix has effectively adapted to a competitive landscape, enhancing user growth and revenue, demonstrating its pricing power and market adaptability.
- Content Investment Plans: The company plans to spend $20 billion on content, up from $18 billion last year; while the price hike may not be necessary to cover this increased budget, it could support expansion into new areas like livestreaming and video podcasts.
- User Base and Brand Advantage: With over 325 million paid subscribers expected by the end of 2025, Netflix's strong brand and content library provide an economic moat, allowing it to maintain a competitive edge in the streaming market, making its stock a favorable option for long-term investors.
See More
Netflix Raises Subscription Prices, Potential Revenue Boost Ahead
- Price Increase Impact: Netflix is raising prices across all subscription tiers by $1 to $2, which, while not favorable for consumers, is expected to result in a slight revenue boost, showcasing the company's pricing power in a competitive streaming market.
- 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.
- Content Investment Plans: The company plans to spend $20 billion on content, up from $18 billion last year, indicating that while the price increase isn't solely to cover this budget, it may provide additional flexibility for expansion into new areas like livestreaming and video podcasts.
- Long-Term Investment Appeal: With over 325 million paid subscribers and ongoing opportunities for market expansion, Netflix's stock remains a strong pick for long-term investors, even though it was not included in the latest list of top recommended stocks by analysts.
See More
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- Price Increase Strategy: Netflix has raised subscription prices across all paid tiers, with the ad-supported plan increasing by $1 to $8.99 and the standard and premium plans rising by $2 to $19.99 and $26.99 respectively, aimed at supporting its $20 billion content budget.
- User Growth Potential: By the end of 2025, Netflix's global subscriber base grew to 325 million, an increase of 25 million from the previous year, and the new subscription prices are expected to further enhance user retention and market share.
- Market Reaction Expectations: Wall Street analysts generally believe that the price hikes will positively impact Netflix's revenue, with JPMorgan estimating an additional $1.7 billion in annual revenue, although much of this increase is already factored into the 2026 guidance.
- Strategic Adjustment Opportunity: After walking away from the Warner Bros. asset acquisition, Netflix received a $2.8 billion termination fee, providing it with more funds for content creation, thereby strengthening its position in the competitive streaming market.
See More
Netflix Raises Subscription Prices Again, Testing User Loyalty
- 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
Streaming Industry Faces Challenges and Opportunities
- Industry Challenges Intensify: Despite a surge in demand for streaming content, the broadcast television industry faces escalating cord-cutting challenges, leading to sluggish overall revenue growth and prompting companies to adopt more cautious cash management strategies to protect profits.
- Content Diversification Strategy: Industry players are diversifying their content offerings to meet OTT service demands, leveraging user data and AI technologies to enhance user engagement, thereby maintaining attractiveness in a highly competitive market.
- Advertising Revenue Under Pressure: High inflation and rising interest rates have led to cuts in advertising budgets, which are expected to impact revenue growth in the short term, particularly in competition with tech and social media companies.
- Impact of Low-Priced Bundles: As cord-cutting increases, industry companies are introducing
See More
