Warner Bros. Discovery Acquisition Nears Critical Shareholder Vote

Warner Bros. Discovery (A) US9344231041

The proposed acquisition of Warner Bros. Discovery by streaming leader Netflix has entered a pivotal stage, following a key U.S. Senate hearing. Top executives from both corporations faced questioning from the Senate’s antitrust subcommittee this week, addressing widespread concerns regarding potential job cuts, consumer pricing, and the competitive landscape of the media industry.

Appearing before lawmakers on Tuesday, Netflix Co-CEO Ted Sarandos and Warner Bros. Discovery’s Chief Revenue and Strategy Officer, Bruce Campbell, provided specific commitments. Sarandos pledged that Warner Bros. theatrical films would maintain a 45-day exclusive window in cinemas before becoming available on streaming platforms, a condition intended to preserve the traditional movie exhibition model.

Campbell sought to alleviate fears about the merger's impact, stating that no major workforce reductions or direct price increases for consumers were currently planned. Such assurances are being viewed with skepticism by industry observers, given the history of consolidation in the media sector.

Deal Structure and Competing Interest

The terms of the acquisition were revised in January 2026. Originally structured as a combination of cash and stock, the transaction is now proposed as an all-cash deal, offering Warner Bros. Discovery shareholders $27.75 per share. This simplified approach is designed to expedite regulatory approval and provide greater certainty for investors.

A shareholder vote to decide the merger is scheduled for April 2026. Adding a layer of complexity to the situation, Paramount Global has also expressed preliminary interest in Warner Bros. Discovery, indicating a potential competing bid for the assets.

Next Steps: Shareholder Decision and Financial Health

With the Senate hearing concluded, focus shifts to the upcoming shareholder ballot. The result of this vote is poised to significantly reshape the competitive dynamics of the global streaming market. Concurrently, market participants are awaiting Warner Bros. Discovery’s next quarterly earnings report, due in late February. These financial results will offer a crucial snapshot of the company’s operational and economic standing as it approaches a potential change in ownership.