CNBC reports that Warner Bros. Discovery is expected to hold a shareholder vote in March on the proposed $82.7 billion transaction to sell its streaming and studio assets to Netflix. If approved, this deal would transfer ownership of HBO Max and related production divisions to Netflix, adding an estimated 76 million subscribers and strengthening Netflix’s global content pipeline. Institutional investors controlling over 60 percent of outstanding shares have publicly signaled support, while a small group of activist shareholders has raised concerns about valuation. A positive vote would mark one of the largest industry consolidations in entertainment history and could accelerate Netflix’s revenue growth trajectory by projecting an additional $10 billion in annual subscription and licensing revenue by 2028.

Netflix reported fourth-quarter revenue of $12.05 billion, up 17.6 percent year-over-year, surpassing consensus estimates of $11.97 billion. Earnings per share came in at $0.56, modestly above the consensus of $0.55. The company achieved a net margin of 24.3 percent and returned on equity of 43.3 percent, reflecting continued operational efficiency. Management set first-quarter guidance at $0.76 EPS, in line with analysts’ forecasts, and reaffirmed full-year EPS expectations of approximately $24.58, underpinned by anticipated ad-supported tier rollouts and international expansion in markets such as India and Latin America.

Netflix CEO Gregory Peters sold 105,781 shares for a total of $8.77 million, reducing his position by 46.4 percent and maintaining a direct holding valued at approximately $10.13 million post-transaction. On the sell-side, CFRA downgraded the stock from Strong Buy to Hold with a $100 target, Benchmark reiterated a Hold stance, Loop Capital assigned a $104 objective, and Robert W. Baird trimmed its price target from $150 to $120 while retaining an Outperform rating. These adjustments reflect divergent views on valuation and near-term integration risk related to the Warner Bros. Discovery transaction, even as the consensus target stands at $116.17 with a Moderate Buy consensus among 52 analysts.