Netflix slips as Warner deal concerns outweigh Q4 beat

Netflix shares fall 7% premarket, despite the streaming firm beating Wall Street estimates for revenue and earnings for the holiday quarter

Shares come under pressure as investors zero in on co's amended all‑cash bid for Warner Bros Discovery WBD.O

The amended bid comes as Netflix seeks to fend off a rival offer from Paramount Skydance PSKY.O

Analysts at TD Cowen called WBD'S acquisition a "strategic accelerant," but said Netflix's 2026 operating margin guidance came in below expectations, reflecting higher content amortisation and deal-related costs

Co reported Q4 revenue of $12.1 bln, above analysts' estimates of $11.97 bln, while adjusted EPS of 56 cents also topped forecasts, according to LSEG

NFLX said it would pause share buybacks and has secured more than $67 bln in bridge financing to back its $27.75-per-share all-cash offer for WBD

Co forecast 2026 revenue in the range of $50.7 bln to $51.7 bln, with the lower end below consensus expectations of around $51 bln

Netflix stock declined 20% since its bid for WBD early-December