Netflix’s Amended Offer Puts Pressure on Paramount | Bloomberg Tech 1/20/2026

Netflix has intensified the bidding war for Warner Bros. Discovery’s studio and streaming assets by submitting an amended all-cash offer, a strategic move designed to expedite the sale and sideline rival bidder Paramount Global. This major consolidation play arrives amidst a turbulent trading session where the NASDAQ suffered its worst decline in over a month, driven by escalating geopolitical tensions between the U.S. and Greenland and renewed fears regarding international tariffs.

Key Points

• Deal Structure: Netflix shifted to an all-cash bid for Warner Bros. Discovery’s studio and streaming arm to mitigate concerns over its own stock volatility, pressuring Paramount to increase its offer to the $32–$34 per share range.
• Market Volatility: The S&P 500 wiped out its year-to-date gains and the NASDAQ dropped significantly as investors moved capital into safe havens like gold amid geopolitical friction.
• AI Investment: Despite broader market headwinds, AI startup Humans& raised a record-breaking $480 million seed round at a $4.8 billion valuation, backed by major players including Nvidia.
• Semiconductor Security: Industry leaders at Davos debated export controls, with Anthropic’s CEO warning against shipping advanced chips to China while UAE-based G42 secured U.S. export licenses.

Streaming Wars Escalate with Cash Offer

In a decisive move to secure Warner Bros. Discovery’s premium assets, Netflix has revised its proposal to an all-cash deal. This amendment addresses the "overhang" causing hesitation in negotiations: the volatility of Netflix's own stock, which had been a component of the initial offer. The deal structure involves Netflix acquiring the studio and streaming businesses, while the legacy cable networks are slated to be spun off.

The revised offer places significant pressure on Paramount Global, which had previously argued its bid was superior. According to Bloomberg Intelligence analysts, the ball is now squarely in Paramount's court.

"This really ramps up the pressure on Paramount... They have been arguing that the Netflix offer is not that great and now Netflix making it an all-cash deal [changes the dynamic]. What this hinges on now is the value of the cable network business... This is really going to up the ante for Paramount to raise their bid significantly to sway Warner's board."

Analysts suggest that for Paramount to remain competitive, they may need to raise their bid to approximately $34 per share, considering the potential value extraction from spinning off linear assets like CNN and leveraging international exposure. Investors are now looking toward Netflix’s Q4 earnings and 2026 guidance to gauge the company's financial health as it pursuing this massive acquisition.

Geopolitics Trigger "Sell America" Trade

While M&A activity heats up, the broader markets faced a sharp selloff. The NASDAQ 100 fell by more than 1%, and the S&P 500 erased its gains for 2026. The volatility is attributed to a "tussle" regarding Greenland and fears of further European tariffs, leading investors to rotate out of risk assets and into defensive positions.

Tiffany Wade of Columbia Threadneedle noted that while the fundamental backdrop for stocks remains strong, headline risk is driving consolidation. The "Magnificent 7" technology stocks, which have driven much of the recent market growth, were among the notable underperformers.

"I think we could see some more consolidation, maybe a few points lower in the market. Volatility might lead to additional selling but I think this is a good opportunity... We are not seeing additional selling in names that might be hardest hit by the tariffs. I think this is a broader reflection of selling in the market."

Despite the tech selloff, pockets of resilience remain. Intel has seen year-to-date growth of over 30%, driven by optimism surrounding its CPU business and PC market recovery, suggesting investors are looking for AI plays outside the traditional hyperscalers.

The AI and Defense Frontier

Even as public markets stumble, private capital continues to flow aggressively into frontier technology. In a signal that the AI investment boom has not cooled, a new startup comprised of former researchers from Anthropic, xAI, and Google—dubbed Humans&—raised a $480 million seed round at a staggering $4.8 billion valuation. Nvidia participated as an early investor, underscoring the capital-intensive nature of building new frontier models.

Defense Tech and Arctic Security

Geopolitical instability is also funneling capital into defense technology. Georgian, a fintech and AI investment firm, announced its first defense tech investment in Dominion Dynamics. The company is building an Arctic sensing and intelligence network, a region becoming increasingly strategic amid current global tensions.

Margaret Wu, Lead Investor at Georgian, emphasized the shift toward "Neo-Primes" in the defense sector.

"The Arctic has become an increasingly strategic and critical geography in the geopolitical landscape. There are very few technology options for operating in the extreme conditions of the Arctic environment... We are really watching a battle between legacy defense primes and neo-primes play out."

Global Chip Security and Export Controls

At the World Economic Forum in Davos, the intersection of national security and artificial intelligence took center stage. Peng Xiao, CEO of UAE-based G42, confirmed the company has secured export licenses to receive advanced Nvidia chips, following strict security agreements with the U.S. government to prevent technology transfer to unauthorized parties.

Conversely, Dario Amodei, CEO of Anthropic, issued a stark warning to the administration regarding semiconductor exports to China. Amodei argued that providing even slightly older generations of chips constitutes a significant national security risk, given that Chinese models are currently trailing U.S. capabilities.

"It is a bit like selling nuclear weapons to North Korea... Imagine 100 million people smarter than any Nobel Prize winner and it is going to be under the control of one country or another."

As the market digests the implications of Netflix’s aggressive acquisition strategy and the shifting geopolitical landscape, all eyes turn to the upcoming earnings reports from the "Magnificent 7." These disclosures will likely determine whether the current market dip is a temporary reaction to headlines or the beginning of a deeper correction in the tech sector.