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: 96.240
Low
92.00
Averages
114.18
High
150.00
Current: 96.240
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.
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- Stock Price Increase: Netflix closed at $97.09 on Monday, up 0.88%, reflecting investor approval of management's decision to walk away from the Warner Bros. Discovery acquisition, thereby boosting market confidence.
- Surge in Trading Volume: The trading volume reached 78.8 million shares, approximately 53% above the three-month average, indicating heightened investor interest and engagement regarding the company's growth potential.
- Analyst Coverage Resumed: JPMorgan resumed coverage with an Overweight rating and a $120 price target, highlighting content strength and ad-tier traction, with an expectation of reaching around $11 billion in free cash flow by 2026.
- Clear Strategic Positioning: Netflix's decision positions it as a platform focused on monetization and operating leverage rather than consolidation, with investors keenly watching for ad-tier growth and margin expansion to confirm sustainable free cash flow without major acquisitions.
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- Stock Price Surge: With Netflix's stock recently climbing to $97.14 and a market cap of $406 billion, its price-to-earnings ratio now stands at 38 times, significantly higher than the S&P 500's average of 25 times, yet long-term investors remain optimistic about its growth potential.
- Content Investment Plans: Despite dropping the Warner Bros. acquisition, Netflix plans to invest $20 billion in films and content expansion in 2023, indicating its ongoing commitment to content development and growth strategy.
- Management Decision-Making: Netflix's management characterized the Warner Bros. acquisition as a “nice to have” rather than essential, demonstrating a prudent approach to expanding its content library and reflecting the company's rational and disciplined pursuit of growth.
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- Content Expansion Plans: Despite not pursuing a massive acquisition, Netflix plans to invest $20 billion in films and content expansion in 2023, indicating a continued commitment to enhancing its content library and strengthening its competitive position in the market.
- Stock Valuation Recovery: The recent rise in Netflix's stock price has pushed its valuation to around 38 times earnings, significantly higher than the S&P 500 average of 25 times, suggesting that the market recognizes its growth potential despite the elevated valuation.
- Prudent Management Strategy: Netflix's management emphasizes that acquisitions should be based on sound reasoning rather than aggressive pursuit, and the abandonment of the Warner Bros. deal showcases its cautious approach to content expansion, further solidifying its image as a quality growth stock.
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- Vote of Confidence: Coatue Management increased its stake in Netflix by over 1600% in Q4 2025, adding approximately 10.2 million shares, demonstrating strong conviction in the company's future despite Netflix's stock being down double digits over the past year.
- Risk Management: By walking away from acquisition talks, Netflix mitigated integration risks, protected its balance sheet, avoided dilution, and sidestepped the empire-building narrative often associated with large media deals, showcasing disciplined management.
- Strategic Flexibility: By preserving capital flexibility, Netflix can allocate funds towards content, advertising expansion, technology investments, or buybacks, which the market has responded positively to, indicating a preference for a focus on core business rather than superficial growth pursuits.
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- Deal Dynamics: Netflix's withdrawal from the Warner Bros. deal reflects a reassessment of its content investment strategy, which could impact future collaboration strategies and the competitive landscape.
- Promises vs. Data: There is a discrepancy between Jack Dorsey's latest promises and actual data, which may negatively affect his personal brand and the market trust in related companies.
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Netflix Stock Rises as Analysts Resume Coverage and Strategic Decisions Pay Off
- Stock Price Increase: Netflix closed at $97.09 on Monday, up 0.88%, reflecting investor approval of management's decision to walk away from the Warner Bros. Discovery acquisition, thereby boosting market confidence.
- Surge in Trading Volume: The trading volume reached 78.8 million shares, approximately 53% above the three-month average, indicating heightened investor interest and engagement regarding the company's growth potential.
- Analyst Coverage Resumed: JPMorgan resumed coverage with an Overweight rating and a $120 price target, highlighting content strength and ad-tier traction, with an expectation of reaching around $11 billion in free cash flow by 2026.
- Clear Strategic Positioning: Netflix's decision positions it as a platform focused on monetization and operating leverage rather than consolidation, with investors keenly watching for ad-tier growth and margin expansion to confirm sustainable free cash flow without major acquisitions.
See More
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- Acquisition Battle Ends: Netflix's decision to abandon the Warner Bros. acquisition concludes a months-long bidding war, relieving investors and causing its stock to shift from negative to positive territory, reflecting market confidence in its financial health.
- Stock Price Surge: With Netflix's stock recently climbing to $97.14 and a market cap of $406 billion, its price-to-earnings ratio now stands at 38 times, significantly higher than the S&P 500's average of 25 times, yet long-term investors remain optimistic about its growth potential.
- Content Investment Plans: Despite dropping the Warner Bros. acquisition, Netflix plans to invest $20 billion in films and content expansion in 2023, indicating its ongoing commitment to content development and growth strategy.
- Management Decision-Making: Netflix's management characterized the Warner Bros. acquisition as a “nice to have” rather than essential, demonstrating a prudent approach to expanding its content library and reflecting the company's rational and disciplined pursuit of growth.
See More
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- Investor Relief: Netflix's decision to abandon its $82.7 billion acquisition of Warner Bros. ends a months-long bidding war, providing relief to investors and allowing the stock to shift from negative to positive territory, reflecting confidence in the company's management.
- Content Expansion Plans: Despite not pursuing a massive acquisition, Netflix plans to invest $20 billion in films and content expansion in 2023, indicating a continued commitment to enhancing its content library and strengthening its competitive position in the market.
- Stock Valuation Recovery: The recent rise in Netflix's stock price has pushed its valuation to around 38 times earnings, significantly higher than the S&P 500 average of 25 times, suggesting that the market recognizes its growth potential despite the elevated valuation.
- Prudent Management Strategy: Netflix's management emphasizes that acquisitions should be based on sound reasoning rather than aggressive pursuit, and the abandonment of the Warner Bros. deal showcases its cautious approach to content expansion, further solidifying its image as a quality growth stock.
See More
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- Stock Surge: Following a more than 13% increase on Friday, Netflix's stock continued to rise on Monday, reflecting positive market sentiment after the company exited acquisition talks with Warner Bros Discovery, thereby eliminating potential acquisition risks and boosting investor confidence.
- Vote of Confidence: Coatue Management increased its stake in Netflix by over 1600% in Q4 2025, adding approximately 10.2 million shares, demonstrating strong conviction in the company's future despite Netflix's stock being down double digits over the past year.
- Risk Management: By walking away from acquisition talks, Netflix mitigated integration risks, protected its balance sheet, avoided dilution, and sidestepped the empire-building narrative often associated with large media deals, showcasing disciplined management.
- Strategic Flexibility: By preserving capital flexibility, Netflix can allocate funds towards content, advertising expansion, technology investments, or buybacks, which the market has responded positively to, indicating a preference for a focus on core business rather than superficial growth pursuits.
See More
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- PayPal Buyout Chatter: Amid a down market, PayPal's stock rose on rumors of potential buyouts, highlighting its appeal as a profitable business, although the market remains cautious about its future trajectory.
- Live Oak Bankshares Performance: The bank's stock has surged nearly 20% over the past year, significantly outperforming the market, showcasing its specialization and high-quality loan origination in the small business lending sector, thereby enhancing its competitive edge.
- Upbound's Value Proposition: Upbound attracts investors with a forward P/E ratio of five and a dividend yield exceeding 7%, and despite slower growth, its revenue accelerated to 11% in the past year, indicating stability and potential in the rental market.
- Disruptive Potential of Hims & Hers: The company challenges traditional healthcare with a direct-to-consumer model, facing legal hurdles but is viewed favorably for its long-term growth potential, which could transform the delivery of healthcare services.
See More
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- Earnings Highlights: The latest earnings reports from Duolingo, CoreWeave, and Block reveal their financial performance, although specific figures are not disclosed, the overall trend indicates sustained market interest and investor confidence in these companies.
- Deal Dynamics: Netflix's withdrawal from the Warner Bros. deal reflects a reassessment of its content investment strategy, which could impact future collaboration strategies and the competitive landscape.
- Promises vs. Data: There is a discrepancy between Jack Dorsey's latest promises and actual data, which may negatively affect his personal brand and the market trust in related companies.
- Market Reaction: While the video analyzes multiple companies' earnings, it does not provide specific stock price changes, indicating that the market's response to this information requires further observation.
See More
