Netflix (NFLX) shares fell 5% on February 12, 2026. The stock reached a new 52-week low of approximately $79. This downturn established a negative trajectory for the following trading session.
Mounting competition and investor skepticism regarding the proposed acquisition of Warner Bros. Discovery assets drove the decline. Paramount Skydance intensified the bidding war by sweetening its rival offer for Warner Bros. Discovery.
Paramount offered to cover the substantial breakup fee Warner Bros. would owe Netflix if the current deal fails. This move introduces significant uncertainty into Netflix's strategic expansion plans. Shareholders anticipate a vote on the Netflix acquisition proposal in March.