Netflix Stock Dropped 8% Last Month -- Here's What Happened

Many sectors started the twelvemonth by tumbling connected fears of runaway spending connected information centers and artificial quality (AI) shaking up full industries.

Netflix (NASDAQ: NFLX) shares besides fell successful January, but its 8% diminution stems from a wholly antithetic acceptable of concerns.

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Instead, Netflix shareholders are grappling with their ain spirit of uncertainty and risk.

The January driblet ties backmost to the accidental for Netflix to get assets from Warner Bros. Discovery (NASDAQ: WBD), a way Warner forged years ago. Poor banal performance, dense debt, and weakening contented gross pushed Warner to primitively prosecute a important restructuring.

In June 2025, Warner announced plans to abstracted itself into 2 publically traded companies, Streaming and Studios, and Global Networks, to "maximize its potential." The Streaming and Studios part would location Warner Bros.' movie and TV studios, HBO and HBO Max, DC Studios, and the company's large contented libraries. Global Networks would see CNN, TNT Sports, Discovery, and integer brands similar Discovery+ and Bleacher Report.

That program took a crook connected Oct. 21, 2025, erstwhile Warner Bros announced it was exploring plus income and alternatives.

Speculation soon swirled astir imaginable suitors, with Netflix, Paramount Skydance, and Comcast considered aboriginal contenders.

Netflix enactment an extremity to the speculation connected Dec. 5, 2025. It announced a definitive statement to get assets from Warner, including HBO and HBO Max, successful a cash‑and‑stock transaction valued astatine $27.75 per share.

Three days later, Paramount stepped successful with an all‑cash tender connection of $30 per stock for the entirety of Warner Bros. Discovery. Netflix amended its connection to an all‑cash operation connected Jan. 20, portion maintaining the $27.75 per stock value. The full woody is valued astatine astir $83 billion.

So wherever bash things stand?

For Paramount, it announced an amended bid connected Feb. 10, committing to screen a $2.8 cardinal termination interest Warner would beryllium Netflix if it switched deals.

At the aforesaid time, Netflix's connection continues moving done its ain support process. It expects a WBD shareholder ballot to o.k. the connection by April 2026. With regulatory filings underway successful the U.S. and Europe, Netflix besides projects the woody volition adjacent wrong 12 to 18 months of the archetypal agreement.