Warner Bros. shareholders to vote on Netflix deal in March

Warner Bros Shareholders Likely to Vote on Netflix Deal in March

Warner Bros. Discovery shareholders are expected to vote on Netflix’s $82.7 billion acquisition offer in March, significantly accelerating the timeline from the previously expected April vote, CNBC reported on Monday.

According to CNBC’s David Faber, the vote could occur in the first couple of weeks of March. The expedited timeline follows Netflix and Warner Bros. Discovery’s January 20 decision to amend their agreement to an all-cash transaction valued at $27.75 per share, eliminating the original cash-and-stock structure that included $23.25 in cash and $4.50 in Netflix stock.deadline

Race Against Paramount’s Hostile Bid

The accelerated vote is seen as a strategic move to fend off a competing $108.4 billion hostile takeover bid from Paramount Skydance, led by David Ellison. Warner Bros. Discovery’s board has unanimously rejected Paramount’s offer on multiple occasions, labeling it “inadequate” and “not in the best interests” of shareholders.mediaplaynews

Paramount extended the deadline for its $30 per share tender offer to February 20, buying additional time to persuade investors that its proposal is superior to Netflix’s bid. The company has launched a proxy fight, filed a lawsuit against Warner Bros. Discovery, and announced plans to nominate director candidates to the board.aljazeera

As of late January, only about 168.5 million Warner Bros. Discovery shares had been tendered in support of Paramount’s offer—far short of the 50% threshold needed to gain control of the company’s approximately 2.48 billion shares. Warner Bros. Discovery noted that over 93% of shareholders had rejected “Paramount’s inferior scheme”.streamtvinsider

Stakes for the Streaming Industry

Should shareholders approve the Netflix transaction, the deal would face intense scrutiny from U.S. and European competition authorities who will assess whether the combination would reduce competition or limit consumer choice.globalbankingandfinance

For Netflix, acquiring Warner Bros. Discovery’s streaming and studio assets—including HBO, HBO Max, and franchises like “Friends” and “Batman”—would provide cultural firepower for streaming-first spinoffs and sequels. The deal would also make Netflix the largest global streaming player with approximately half a billion subscribers.marketscreener

If shareholders reject the Netflix deal, Paramount Skydance is expected to escalate pressure and attempt to replace Warner Bros. board members with directors more open to reviewing its hostile offer. Netflix’s acquisition would not include Warner Bros. Discovery’s linear assets—CNN, TNT Sports, and Discovery—which would be spun off into a new publicly traded entity called Discovery Global.mediaplaynews