In early December, Netflix announced it would acquire Warner Bros.’ film and television studios, HBO, HBO Max and related assets in an all-cash transaction valued at approximately $82.7 billion. The board of Warner Bros. Discovery chose Netflix’s offer of $27.75 per share over Paramount’s $108 billion cash-and-stock bid, primarily because Netflix’s proposal focused on entertainment assets and carried fewer debt risks. The deal will bring franchises such as Game of Thrones, Harry Potter and DC Comics under Netflix’s control, expanding its global content library beyond the 96 billion viewing hours recorded in H2 2025.

To fund the acquisition, Netflix arranged roughly $42.2 billion in bridge loans and paused its share-repurchase program to preserve cash. Should regulators block the deal, the company faces a $5.8 billion breakup fee. Intense antitrust scrutiny from the Justice Department and congressional inquiries – including upcoming testimony by co-CEO Ted Sarandos before a Senate committee – has raised concerns that combining Netflix’s 325 million subscribers with Warner Bros.’ assets could grant the new entity excessive market power. Prominent senators have warned that the merger might lead to higher subscription fees and reduced competition in the streaming landscape.

Following Netflix’s Q4 2025 earnings beat – 18% year-over-year revenue growth and a 25% operating margin – shares fell over 5% in after-hours trading, reflecting investor unease about the acquisition’s impact on balance sheet leverage and content spend. Netflix plans to increase its programming budget by 10% in 2026 on top of the $18 billion spent in 2025, while servicing new debt. Management has reassured subscribers there will be no immediate price hikes during the regulatory review, but historical trends suggest annual rate increases once the merger closes. A shareholder vote is expected in April, with deal completion projected 12 to 18 months thereafter, contingent on regulatory approvals.