Netflix Investors Face Pivotal Vote on Warner Bros. Discovery Acquisition

The streaming landscape is poised for a seismic shift as Netflix approaches a critical juncture in its ambitious expansion plans. Shareholders are set to make a decisive vote in March, determining the future trajectory of the entertainment giant amidst a heated takeover battle and intense regulatory scrutiny.

Netflix shares recently closed at $82.76, a level significantly below its 52-week high of $134.12 recorded in June 2025. The company maintains a formidable market capitalization of approximately $351 billion. Key financial metrics from its latest reporting period underscore its financial position:

• Trailing Twelve-Month Revenue: $45.18 billion
• Net Profit: $10.98 billion
• Earnings Per Share: $2.53
• Price-to-Earnings Ratio: 32.71
• Cash Reserves: $9.06 billion

This financial firepower is central to the proposed strategic move now facing a shareholder vote.

The Competing Offers for Warner Bros. Discovery

According to CNBC reports, Warner Bros. Discovery (WBD) shareholders are scheduled to vote on a Netflix acquisition proposal in March. The timeline accelerated after Netflix revised its offer to an all-cash transaction, simplifying the deal structure. The streaming leader is offering $27.75 per share for WBD's film studio and its HBO Max streaming business. Notably, the deal excludes WBD's cable division, which holds valuable sports rights such as those for Major League Baseball.

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However, this agreement faces a direct challenge. Paramount Skydance launched a hostile bid of $30 per share for the entire company, including the cable networks. The WBD board rejected this competing offer, citing that over 93% of shareholders have not tendered their shares to the rival bidder. WBD's management has expressed confidence in finalizing the transaction with Netflix and navigating the necessary regulatory approvals.

Regulatory Hurdles and Industry Concessions

Approval from competition authorities in the United States and Europe now stands as the decisive factor for the deal's success. The European Commission, known for its stringent stance toward large technology firms, is viewed as a particularly vigilant regulator. Sources close to WBD, however, indicate strong confidence that Brussels will grant approval, potentially subject to conditions such as local production commitments.

To alleviate concerns from the theatrical exhibition industry, Netflix Co-CEO Ted Sarandos has committed to maintaining a 45-day exclusive theatrical window for Warner films. The company states it is working closely with the U.S. Department of Justice and the European Commission to secure all necessary clearances.

The upcoming March vote represents a defining moment for Netflix's growth strategy. A successful acquisition would deliver a massive film studio business with over $4 billion in global box office revenue. The coming weeks will reveal whether regulators will permit the streaming titan to make this transformative strategic move.