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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 80.870
Low
92.00
Averages
129.47
High
152.50
Current: 80.870
Low
92.00
Averages
129.47
High
152.50
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.
Netflix's Future Outlook and Challenges
- Market Dominance: Despite Netflix's stock underperforming the S&P 500 by 11% over the past year, its influence in the global entertainment industry remains strong, with projected revenues of $45 billion in 2025, reflecting a 16% annual growth rate that underscores its ongoing content creation capabilities.
- Acquisition Challenges: The all-cash acquisition of Warner Bros. for $82.7 billion may strain Netflix's liquidity, leading to a pause in stock repurchases; however, this move could solidify its leadership in the streaming market, potentially attracting investor interest.
- Slowing Revenue Growth: Netflix anticipates revenue growth to slow to 12%-14% in 2026, down from 2025's rate, which could further dampen investor sentiment, especially given its liquidity of only $9 billion, necessitating stock dilution or increased debt to finance the acquisition.
- Advertising Revenue Potential: Despite these challenges, Netflix expects its advertising revenue to nearly double by 2026, indicating significant potential for diversifying income sources, which may attract more users and enhance market share in the competitive streaming landscape.
See More
Disney's Streaming Business Reaches Profit Turning Point
- Profitability Surge: Disney's direct-to-consumer streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a significant rebound from a cumulative loss of $4.6 billion in 2020 and 2021, demonstrating the sustainability and market appeal of its business model.
- User Growth Strategy: Leveraging powerful intellectual properties like Pixar, Star Wars, and Marvel, Disney rapidly expanded its subscriber base, with projected operating profits of $500 million in Q2 2026, reflecting a $200 million increase from the previous year and showcasing its competitive edge in the streaming market.
- Attractive Market Valuation: Disney's stock is currently trading at a forward price-to-earnings ratio of 16.2, below the S&P 500's 22.2 multiple, indicating that the market has yet to fully digest its transition, potentially offering an attractive buying opportunity for investors.
- Future Growth Expectations: The company's leadership anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues into fiscal 2027 and beyond, the profitability of its streaming business could drive a bull run in its stock price.
See More
Disney's Streaming Profits Surge Amid 48% Stock Decline: Is a Bull Run Ahead?
- Streaming Business Transformation: Disney's direct-to-consumer streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a successful turnaround from a cumulative loss of $4.6 billion in 2020 and 2021, indicating strong recovery potential in the streaming market.
- User Growth Strategy: By integrating platforms like Disney+, Hulu, and ESPN, Disney rapidly expanded its subscriber base, leveraging its powerful intellectual property to attract global audiences, thereby enhancing market competitiveness and reducing churn rates.
- Attractive Market Valuation: Disney's forward price-to-earnings ratio stands at 16.2, below the S&P 500's 22.2 multiple, suggesting that the current stock price may be undervalued, providing potential buying opportunities for investors.
- Future Growth Expectations: The company anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues, combined with rising streaming profits, Disney's stock could be poised for a bull run.
See More
Disney's Streaming Business Turns Profitable
- Profit Transformation: Disney's direct-to-consumer (DTC) streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a significant turnaround since the launch of Disney+ in 2019, indicating its growing success in a competitive market.
- User Growth: Despite a cumulative loss of $4.6 billion in fiscal 2020 and 2021, Disney rapidly scaled its subscriber base, leveraging its strong intellectual property, which underscores the global appeal of its content and sets a foundation for future growth.
- Market Valuation: Disney's current forward price-to-earnings ratio stands at 16.2, significantly lower than the S&P 500's 22.2 multiple, suggesting that the market undervalues its stock, potentially offering an attractive buying opportunity for investors.
- Future Outlook: The company anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues alongside rising streaming profits, Disney's stock could enter a bull run, further solidifying its market position.
See More
Netflix's Warner Bros. Acquisition Sparks Market Interest
- Poor Market Performance: Despite a significant recovery in 2022, Netflix's stock has underperformed the S&P 500 over the past year, losing 11% last month and trading at a 40% discount to its 52-week high, which may dampen investor confidence.
- Strong Financial Growth: In 2025, Netflix reported revenue of $45 billion, a 16% annual increase, with net income nearing $11 billion, up 26%, demonstrating its strong influence in the streaming industry despite rising costs.
- Acquisition Risks: Netflix's all-cash acquisition of Warner Bros. for $82.7 billion could enhance its market position, but with only around $9 billion in liquidity, it may need to dilute its stock or take on significant debt, leading to a pause in share repurchases.
- Cautious Future Outlook: Although revenue growth is projected to slow to 12%-14% in 2026, Netflix expects subscriber growth and a near doubling of ad revenue, indicating long-term potential in the streaming market, but short-term challenges may persist.
See More
Walt Disney's Five-Year Outlook
- Streaming Growth Potential: Disney's streaming platforms Disney+ and Hulu+ had 191 million global subscribers as of September 2025, with an expected operating income of $500 million in Q2 2026, marking a significant rebound from a $2.9 billion operating loss in fiscal 2020, indicating strong positioning in the new media landscape.
- Experiential Business Expansion: Disney's experiences segment reported $10 billion in revenue and $3.3 billion in operating income in Q1 2025, with plans to expand its fleet by introducing new cruise ships for the Asia market and ongoing park expansions, enhancing customer attraction.
- Long-Term Investment Plan: Management announced a $60 billion investment in September 2023 to bolster the experiences segment, demonstrating the company's commitment to enhancing customer experiences and attracting more potential visitors, particularly those with Disney affinity who have not yet visited the parks.
- Shareholder Return Strategy: Disney shares trade at a forward P/E ratio of 15.8, and in addition to a $0.75 semi-annual dividend, the company plans to buy back $7 billion worth of stock in fiscal 2026, showcasing financial strength and commitment to shareholders, with expectations to outperform the market over the next five years.
See More
Netflix's Future Outlook and Challenges
- Market Dominance: Despite Netflix's stock underperforming the S&P 500 by 11% over the past year, its influence in the global entertainment industry remains strong, with projected revenues of $45 billion in 2025, reflecting a 16% annual growth rate that underscores its ongoing content creation capabilities.
- Acquisition Challenges: The all-cash acquisition of Warner Bros. for $82.7 billion may strain Netflix's liquidity, leading to a pause in stock repurchases; however, this move could solidify its leadership in the streaming market, potentially attracting investor interest.
- Slowing Revenue Growth: Netflix anticipates revenue growth to slow to 12%-14% in 2026, down from 2025's rate, which could further dampen investor sentiment, especially given its liquidity of only $9 billion, necessitating stock dilution or increased debt to finance the acquisition.
- Advertising Revenue Potential: Despite these challenges, Netflix expects its advertising revenue to nearly double by 2026, indicating significant potential for diversifying income sources, which may attract more users and enhance market share in the competitive streaming landscape.
See More
Disney's Streaming Business Reaches Profit Turning Point
- Profitability Surge: Disney's direct-to-consumer streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a significant rebound from a cumulative loss of $4.6 billion in 2020 and 2021, demonstrating the sustainability and market appeal of its business model.
- User Growth Strategy: Leveraging powerful intellectual properties like Pixar, Star Wars, and Marvel, Disney rapidly expanded its subscriber base, with projected operating profits of $500 million in Q2 2026, reflecting a $200 million increase from the previous year and showcasing its competitive edge in the streaming market.
- Attractive Market Valuation: Disney's stock is currently trading at a forward price-to-earnings ratio of 16.2, below the S&P 500's 22.2 multiple, indicating that the market has yet to fully digest its transition, potentially offering an attractive buying opportunity for investors.
- Future Growth Expectations: The company's leadership anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues into fiscal 2027 and beyond, the profitability of its streaming business could drive a bull run in its stock price.
See More
Disney's Streaming Profits Surge Amid 48% Stock Decline: Is a Bull Run Ahead?
- Streaming Business Transformation: Disney's direct-to-consumer streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a successful turnaround from a cumulative loss of $4.6 billion in 2020 and 2021, indicating strong recovery potential in the streaming market.
- User Growth Strategy: By integrating platforms like Disney+, Hulu, and ESPN, Disney rapidly expanded its subscriber base, leveraging its powerful intellectual property to attract global audiences, thereby enhancing market competitiveness and reducing churn rates.
- Attractive Market Valuation: Disney's forward price-to-earnings ratio stands at 16.2, below the S&P 500's 22.2 multiple, suggesting that the current stock price may be undervalued, providing potential buying opportunities for investors.
- Future Growth Expectations: The company anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues, combined with rising streaming profits, Disney's stock could be poised for a bull run.
See More
Disney's Streaming Business Turns Profitable
- Profit Transformation: Disney's direct-to-consumer (DTC) streaming segment achieved an operating profit of $1.3 billion in fiscal 2025, marking a significant turnaround since the launch of Disney+ in 2019, indicating its growing success in a competitive market.
- User Growth: Despite a cumulative loss of $4.6 billion in fiscal 2020 and 2021, Disney rapidly scaled its subscriber base, leveraging its strong intellectual property, which underscores the global appeal of its content and sets a foundation for future growth.
- Market Valuation: Disney's current forward price-to-earnings ratio stands at 16.2, significantly lower than the S&P 500's 22.2 multiple, suggesting that the market undervalues its stock, potentially offering an attractive buying opportunity for investors.
- Future Outlook: The company anticipates double-digit adjusted earnings per share growth this fiscal year, and if this trend continues alongside rising streaming profits, Disney's stock could enter a bull run, further solidifying its market position.
See More
Netflix's Warner Bros. Acquisition Sparks Market Interest
- Poor Market Performance: Despite a significant recovery in 2022, Netflix's stock has underperformed the S&P 500 over the past year, losing 11% last month and trading at a 40% discount to its 52-week high, which may dampen investor confidence.
- Strong Financial Growth: In 2025, Netflix reported revenue of $45 billion, a 16% annual increase, with net income nearing $11 billion, up 26%, demonstrating its strong influence in the streaming industry despite rising costs.
- Acquisition Risks: Netflix's all-cash acquisition of Warner Bros. for $82.7 billion could enhance its market position, but with only around $9 billion in liquidity, it may need to dilute its stock or take on significant debt, leading to a pause in share repurchases.
- Cautious Future Outlook: Although revenue growth is projected to slow to 12%-14% in 2026, Netflix expects subscriber growth and a near doubling of ad revenue, indicating long-term potential in the streaming market, but short-term challenges may persist.
See More
Walt Disney's Five-Year Outlook
- Streaming Growth Potential: Disney's streaming platforms Disney+ and Hulu+ had 191 million global subscribers as of September 2025, with an expected operating income of $500 million in Q2 2026, marking a significant rebound from a $2.9 billion operating loss in fiscal 2020, indicating strong positioning in the new media landscape.
- Experiential Business Expansion: Disney's experiences segment reported $10 billion in revenue and $3.3 billion in operating income in Q1 2025, with plans to expand its fleet by introducing new cruise ships for the Asia market and ongoing park expansions, enhancing customer attraction.
- Long-Term Investment Plan: Management announced a $60 billion investment in September 2023 to bolster the experiences segment, demonstrating the company's commitment to enhancing customer experiences and attracting more potential visitors, particularly those with Disney affinity who have not yet visited the parks.
- Shareholder Return Strategy: Disney shares trade at a forward P/E ratio of 15.8, and in addition to a $0.75 semi-annual dividend, the company plans to buy back $7 billion worth of stock in fiscal 2026, showcasing financial strength and commitment to shareholders, with expectations to outperform the market over the next five years.
See More
