In early December, Netflix completed the definitive agreement to acquire Warner Bros.’ film and television studios, HBO, HBO Max and related assets for an equity value of $82.7 billion. The all-cash offer of $27.75 per Warner Bros. Discovery share was unanimously approved by the WBD board after an intense auction process that saw rival bids from Paramount and Comcast. Netflix structured financing with $42.2 billion in short-term bridge loans and will pause its share buyback program to preserve liquidity. The deal includes a $5.8 billion breakup fee should regulators block the transaction.

To fund the acquisition, Netflix arranged a ten-and-twenty-year maturity mix of bridge facilities and anticipates drawing down $42.2 billion initially, with plans to refinance into long-dated bonds post-close. Management projects that pro forma debt will peak at approximately $87 billion, driving leverage to around 3.5x EBITDA. Despite the substantial increase in net debt, Netflix maintains that its 325 million global subscribers and 25 percent operating margin provide sufficient cash flow to service interest expenses and deleverage over the next three years.

Regulators in the United States and Europe have launched in-depth antitrust reviews given the unprecedented scale of this vertical consolidation. Netflix co-CEO Ted Sarandos is scheduled to testify before a U.S. Senate committee in late February, responding to concerns raised by Senators Elizabeth Warren, Bernie Sanders and Richard Blumenthal. A Warner Bros. Discovery shareholder vote is slated for April, with closing expected 12 to 18 months thereafter, contingent on clearance from competition authorities.

By combining Netflix’s platform—96 billion viewing hours in H2 2025—with iconic franchises such as Game of Thrones, Harry Potter and DC Comics, management forecasts accelerated subscriber growth and reduced content costs through in-house production synergies. Netflix plans to increase its 2026 content budget by 10 percent over the $18 billion spent in 2025, leveraging Warner Bros. IP to deepen viewer engagement. Executives also hint at bundling opportunities for existing HBO subscribers, though no pricing adjustments will occur until after regulatory approval.