Warner Bros. Discovery to Hold Special Shareholder Meeting on March 20, 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy NFLX?
"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:Among this weekend's most notable new streaming content is season three of action thriller series "The Night Agent," which is available on Netflix. Meanwhile, Netflix users can also catch new animated series "Strip Law," starring Adam Scott. Additionally, Apple TVsubscribers can watch season two of mystery thriller series "The Last Thing He Old Me," starring Jennifer Garner and Angourie Rice.WARNER BROS. DISCOVERY:Earlier this week, Warner Bros. Discoveryannounced that it will hold the Special Meeting of Shareholders to vote on the merger with Netflix on March 20, 2026 at 8:00 a.m. Eastern Time and the commencement of mailing of the definitive proxy statement to shareholders in connection with the Special Meeting. WBD also announced that Netflix has provided WBD a limited waiver under the terms of WBD's merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydancefor a seven-day period ending on February 23, 2026 to seek clarity for WBD stockholders and provide PSKY the ability to make its best and final offer. During this period, WBD will engage with PSKY to discuss the deficiencies that remain unresolved and clarify certain terms of PSKY's proposed merger agreement. Netflix retains its matching rights as defined by the merger agreement. The WBD Board of Directors continues to unanimously recommend in favor of the Netflix merger. The WBD Board also unanimously recommends that shareholders reject the PSKY offer.Meanwhile, the U.S. Department of Justice has summoned large theater chains to discuss the potential impact of a sale of Warner Bros. Discovery, with government antitrust lawyers seeking information on how a sale would impact the movie-going public and film releases in theaters, Bloomberg's Thomas Buckley reported. The Justice Department's review is focused on the potential impact of a sale to either Netflix or Paramount Skydance on the cinema industry, people familiar with the matter say.Additionally, Reuters reported Thursday that Netflix has ample cash and could raise its offer for Warner Bros. Discovery if Paramount increases its own bid.DISNEY/BYTEDANCE:Late last week, Disneysent a cease-and-desist letter to Bytedance, claiming that the Chinese tech firm has been infringing on its IP to train and develop an AI video generation model Seedance 2.0 without proper compensation, Axios' Sara Fischer reported, citing a copy of the letter. The move marks the most serious action a major U.S. media giant has taken so far against ByteDance, the author noted.A few days later, ByteDance pledged to curb the AI video-making tool following the letter, Osmond Chia of BBC reports. ByteDance told BBC the company "respects intellectual property rights and we have heard the concerns regarding Seedance 2.0... We are taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users."STOCK PLAYS:Other publicly traded companies in the space include FuboTV, Fox, AMC Networks, Roku, Comcast, and Amazon.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
10 Hold
1 Sell
Moderate Buy
Current: 96.940
Low
92.00
Averages
114.18
High
150.00
Current: 96.940
Low
92.00
Averages
114.18
High
150.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Netflix Reports Strong Q4 Growth Amid Competitive Landscape
- Accelerated Revenue Growth: Netflix's Q4 revenue rose 17.6% year-over-year to $12.1 billion, marking an acceleration from 17.2% in Q3 and 15.9% in Q2, indicating strong business momentum despite intense competition in the streaming market.
- Advertising Business Surge: The company reported ad revenue exceeding $1.5 billion in 2025, up over 150%, showcasing rapid scaling of this new revenue stream, which reduces reliance on rising subscription prices and enhances market competitiveness.
- Improved Profitability: Netflix's operating margin is projected to reach 29.5% in 2025, up from 26.7% in 2024, with expectations to further increase to 31.5% in 2026, providing robust support for future earnings growth.
- Competitive Market Pressures: Despite strong financial momentum, management anticipates revenue growth to slow to 12%-14% in 2026, which could lead to a contraction in the market's valuation multiple for Netflix, potentially impacting shareholder returns.
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- Acquisition Impact: Netflix's initial plan to acquire Warner Bros. at $27.75 per share, totaling an enterprise value of $82.7 billion, fell through as it declined to raise its bid, leading Paramount to acquire the company for $31 per share, highlighting the intense competition in the market.
- Stock Performance: Despite the failed acquisition, Netflix's stock has risen 17% since February 26, reflecting investor confidence in its future, and the company secured a $2.8 billion breakup fee, enhancing its financial flexibility.
- Strategic Focus: Co-CEO Ted Sarandos emphasized that Netflix will concentrate on content creation rather than acquisitions, stating, “We are builders, not buyers,” indicating a commitment to strengthening its core competencies.
- Competitive Market Pressure: Although Netflix is a key player in the streaming market, Nielsen data shows it held only 8.8% of total TV usage as of January 2026, ranking third behind YouTube and Disney, underscoring ongoing competitive pressures.
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- Brand Exposure Strategy: BYD's success in the electric vehicle market has allowed it to surpass Tesla, and it now plans to enhance global brand awareness by participating in Formula 1 racing, particularly in the U.S. and other countries.
- Event Expansion Opportunity: The return of F1 racing in Asia, especially with the Shanghai event, presents BYD with a prime opportunity to increase its influence in the Asian market.
- Investment Challenges: While BYD aims to acquire an existing team or create a new one, the substantial cost of $450 million for a team, along with operational expenses, poses significant challenges that could impact its investment decisions.
- Potential Acquisition Target: BYD may consider acquiring a minority stake in the Alpine team, which is not currently for sale, but opportunities for minority investments could still attract BYD's interest.
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- Alphabet AI Investment Returns: Alphabet plans to increase capital expenditures to between $175 billion and $185 billion by 2026, nearly doubling last year's spending, and despite a nearly 14% drop in stock price since February, its cloud business achieved a 48% revenue growth in Q4 with a 150% increase in operating income, showcasing the potential and competitiveness of its AI investments.
- Rocket Lab Market Volatility: The inaugural flight of Rocket Lab's Neutron rocket has been postponed until the end of the year, causing a decline in stock price; however, the market's fluctuating views on this stock suggest that investors should focus on its growth potential following the success of its smaller Electron rocket, with the space launch market expected to grow nearly 15% annually.
- Netflix Competitive Advantage: Netflix's stock price is about 10% lower than before its December interest in acquiring Warner Bros. Discovery, and while facing pressure from competitor Paramount Skydance, Netflix may benefit from its rival's massive acquisition commitment, indicating its relative strength in the streaming market.
- Timing for Investment: Amid market turbulence, investors should focus on the long-term potential of these companies, particularly Alphabet and Netflix's strong performances in their respective markets, which may provide good buying opportunities.
See More
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- Revenue Comparison: In 2025, Disney reported total revenue of $94.4 billion, with media revenue at $60.1 billion, while YouTube's revenue reached $62 billion, indicating a decline in Disney's competitive edge in the media sector.
- User Growth: YouTube's viewership exceeds 1 billion hours daily, with paid subscribers surpassing 325 million, showcasing its strong performance in user attraction and revenue diversification, further solidifying its market position.
- Profitability Improvement: Despite Disney's revenue growth of only 3%, earnings per share surged by 152% to $6.85, reflecting the company's success in cost control and spending discipline, although its stock price remains flat.
- Market Trend Impact: Disney's traditional broadcast and cable television businesses continue to decline, and despite efforts like acquiring Hulu and launching Disney+, its revenue still heavily relies on legacy media, posing greater challenges ahead.
See More
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- Revenue Comparison: Analysts at MoffettNathanson estimate that YouTube's revenue reached $62 billion in 2025, surpassing Disney's $60 billion, marking a significant shift towards streaming platforms and highlighting the ongoing decline of traditional media.
- User Growth: YouTube has over 325 million paid subscribers and generated approximately $40.4 billion in ad revenue, showcasing its robust user base and profitability, which further solidifies its leadership position in the global media landscape.
- Challenges for Disney: Despite Disney achieving total revenue of $94.4 billion in 2025, a 3% year-over-year increase, the ongoing decline of its legacy media business pressures the company's performance, prompting management to implement cost-cutting and strategic adjustments.
- Investor Confidence: Disney's stock price has remained flat over the past decade and is down about 48% from its peak five years ago, leading investors to adopt a cautious outlook on its future performance, reflecting concerns over the transition in the traditional media sector.
See More
Netflix Reports Strong Q4 Growth Amid Competitive Landscape
- Accelerated Revenue Growth: Netflix's Q4 revenue rose 17.6% year-over-year to $12.1 billion, marking an acceleration from 17.2% in Q3 and 15.9% in Q2, indicating strong business momentum despite intense competition in the streaming market.
- Advertising Business Surge: The company reported ad revenue exceeding $1.5 billion in 2025, up over 150%, showcasing rapid scaling of this new revenue stream, which reduces reliance on rising subscription prices and enhances market competitiveness.
- Improved Profitability: Netflix's operating margin is projected to reach 29.5% in 2025, up from 26.7% in 2024, with expectations to further increase to 31.5% in 2026, providing robust support for future earnings growth.
- Competitive Market Pressures: Despite strong financial momentum, management anticipates revenue growth to slow to 12%-14% in 2026, which could lead to a contraction in the market's valuation multiple for Netflix, potentially impacting shareholder returns.
See More
Netflix Abandons Warner Bros. Acquisition
- Acquisition Impact: Netflix's initial plan to acquire Warner Bros. at $27.75 per share, totaling an enterprise value of $82.7 billion, fell through as it declined to raise its bid, leading Paramount to acquire the company for $31 per share, highlighting the intense competition in the market.
- Stock Performance: Despite the failed acquisition, Netflix's stock has risen 17% since February 26, reflecting investor confidence in its future, and the company secured a $2.8 billion breakup fee, enhancing its financial flexibility.
- Strategic Focus: Co-CEO Ted Sarandos emphasized that Netflix will concentrate on content creation rather than acquisitions, stating, “We are builders, not buyers,” indicating a commitment to strengthening its core competencies.
- Competitive Market Pressure: Although Netflix is a key player in the streaming market, Nielsen data shows it held only 8.8% of total TV usage as of January 2026, ranking third behind YouTube and Disney, underscoring ongoing competitive pressures.
See More
BYD Plans to Enter Formula 1 Racing
- Brand Exposure Strategy: BYD's success in the electric vehicle market has allowed it to surpass Tesla, and it now plans to enhance global brand awareness by participating in Formula 1 racing, particularly in the U.S. and other countries.
- Event Expansion Opportunity: The return of F1 racing in Asia, especially with the Shanghai event, presents BYD with a prime opportunity to increase its influence in the Asian market.
- Investment Challenges: While BYD aims to acquire an existing team or create a new one, the substantial cost of $450 million for a team, along with operational expenses, poses significant challenges that could impact its investment decisions.
- Potential Acquisition Target: BYD may consider acquiring a minority stake in the Alpine team, which is not currently for sale, but opportunities for minority investments could still attract BYD's interest.
See More
Investment Opportunities After Market Shakeup
- Alphabet AI Investment Returns: Alphabet plans to increase capital expenditures to between $175 billion and $185 billion by 2026, nearly doubling last year's spending, and despite a nearly 14% drop in stock price since February, its cloud business achieved a 48% revenue growth in Q4 with a 150% increase in operating income, showcasing the potential and competitiveness of its AI investments.
- Rocket Lab Market Volatility: The inaugural flight of Rocket Lab's Neutron rocket has been postponed until the end of the year, causing a decline in stock price; however, the market's fluctuating views on this stock suggest that investors should focus on its growth potential following the success of its smaller Electron rocket, with the space launch market expected to grow nearly 15% annually.
- Netflix Competitive Advantage: Netflix's stock price is about 10% lower than before its December interest in acquiring Warner Bros. Discovery, and while facing pressure from competitor Paramount Skydance, Netflix may benefit from its rival's massive acquisition commitment, indicating its relative strength in the streaming market.
- Timing for Investment: Amid market turbulence, investors should focus on the long-term potential of these companies, particularly Alphabet and Netflix's strong performances in their respective markets, which may provide good buying opportunities.
See More
Disney Loses Title as World's Largest Media Company
- Revenue Comparison: In 2025, Disney reported total revenue of $94.4 billion, with media revenue at $60.1 billion, while YouTube's revenue reached $62 billion, indicating a decline in Disney's competitive edge in the media sector.
- User Growth: YouTube's viewership exceeds 1 billion hours daily, with paid subscribers surpassing 325 million, showcasing its strong performance in user attraction and revenue diversification, further solidifying its market position.
- Profitability Improvement: Despite Disney's revenue growth of only 3%, earnings per share surged by 152% to $6.85, reflecting the company's success in cost control and spending discipline, although its stock price remains flat.
- Market Trend Impact: Disney's traditional broadcast and cable television businesses continue to decline, and despite efforts like acquiring Hulu and launching Disney+, its revenue still heavily relies on legacy media, posing greater challenges ahead.
See More
YouTube Surpasses Disney as Largest Media Company
- Revenue Comparison: Analysts at MoffettNathanson estimate that YouTube's revenue reached $62 billion in 2025, surpassing Disney's $60 billion, marking a significant shift towards streaming platforms and highlighting the ongoing decline of traditional media.
- User Growth: YouTube has over 325 million paid subscribers and generated approximately $40.4 billion in ad revenue, showcasing its robust user base and profitability, which further solidifies its leadership position in the global media landscape.
- Challenges for Disney: Despite Disney achieving total revenue of $94.4 billion in 2025, a 3% year-over-year increase, the ongoing decline of its legacy media business pressures the company's performance, prompting management to implement cost-cutting and strategic adjustments.
- Investor Confidence: Disney's stock price has remained flat over the past decade and is down about 48% from its peak five years ago, leading investors to adopt a cautious outlook on its future performance, reflecting concerns over the transition in the traditional media sector.
See More
