Political Support Fuels Netflix’s Bid for Warner Bros. Discovery Assets

Investors in Netflix are finding relief after a sharp decline pushed its shares to a fresh annual low. The catalyst for renewed optimism stems from a signal by former U.S. President Donald Trump, which has altered the dynamics of the intense battle for parts of Warner Bros. Discovery (WBD). While fears of regulatory intervention have subsided, the question remains whether this advantage will be enough to overcome a higher competing offer.

The streaming behemoth is currently engaged in a fierce contest for desirable segments of Warner Bros. Discovery. Market reports indicate Netflix has submitted a bid valued at $83 billion. This proposal is strategically targeted at the lucrative studio and streaming divisions, explicitly excluding the CNN news network.

Although rival Paramount has presented a nominally larger offer of $108.4 billion for the entire conglomerate, sources suggest WBD's management currently favors the Netflix proposal. Trump's announcement that he would not interfere in this corporate contest has significantly reduced antitrust concerns. These regulatory risks had been the subject of a Senate hearing as recently as February 3rd, creating uncertainty among investors.

Should investors sell immediately? Or is it worth buying Netflix?

Financial Performance Underpins Recovery

This political backing arrives at a critical juncture for Netflix. The stock faced substantial pressure following the release of its fourth-quarter 2025 results, recently touching a new 52-week low of $79.23. A rebound ensued yesterday, with shares closing at $81.34 on the Nasdaq.

The company's operational performance provides legitimate grounds for growth. Quarterly revenue climbed 19.1% to $12.14 billion, while earnings per share increased from $0.43 to $0.56. Market analysts appear to view the recent stock decline as excessive, with an average price target near $118 indicating significant potential for appreciation.

While competitors like YouTube have recently missed advertising revenue expectations, Netflix's immediate focus is squarely on mergers and acquisitions. The next quarterly earnings are not scheduled until April 21, 2026, meaning the outcome of the WBD bidding contest will likely dictate the stock's near-term trajectory.