NETFLIX (NFLX) Company Report

Warner Bros. Discovery’s board unanimously urged shareholders to reject Paramount Skydance’s $30 per share hostile takeover offer and remain committed to its agreement with Netflix.
The board warned Paramount’s financing plan would impose roughly $87 billion of debt, potentially making it the largest leveraged buyout in history.
Netflix has begun discussions with antitrust regulators in the U.S. and Europe to secure clearance for its proposed acquisition of Warner’s studio and streaming assets.

7 days ago

Bloomberg

Netflix supports Warner Bros. Discovery merger agreement

NFLX

M&A

Proxy Vote Outcomes

The Warner Bros. Discovery Board reaffirmed its unanimous recommendation to approve Netflix’s merger agreement and rejected Paramount Skydance’s revised offer of December 22, 2025.
Under the December 5, 2025 agreement, Netflix will acquire WBD in a cash-and-stock deal at $27.75 per share, implying an enterprise value of $82.7 billion and an equity value of $72.0 billion.
The financing structure is not subject to CFIUS review, and the planned spin-off of WBD’s Discovery Global unit is expected to complete in Q3 2026.
Netflix has filed its Hart-Scott-Rodino notification and is engaging with U.S. and European regulators; the transaction is projected to close in 12–18 months from the original merger agreement date.

7 days ago

Press Release

Netflix announces weekly distributions for YieldMax® Group 2 ETFs

NFLX

Dividends

As of December 30, 2025, YieldMax® declared weekly distributions for its Group 2 Option Income Strategy ETFs, with Distribution per Share ranging from $0.0423 (YQQQ) to $0.6812 (WNTR).
Distribution Rates span 15.71% (BRKC) to 90.88% (WNTR), and 30-Day SEC Yields reach up to 4.66% (MARO), underscoring the income potential and variability across ETF strategies.
All Group 2 ETFs carry a gross expense ratio of 0.99% and distributions may include ordinary dividends, capital gains, or return of capital, which can affect NAV over time.

Dec 31, 2025, 11:55 AM

Press Release

Netflix enters $5 bn revolving credit and $20 bn delayed draw term loan agreements

NFLX

Debt Issuance

On December 19, 2025, Netflix secured a $5 bn senior unsecured revolving credit facility maturing on the earlier of the third anniversary of its Warner Bros. Discovery merger, merger termination, or December 19, 2030, with two one-year extension options; proceeds may fund the merger, refinance debt, or support general corporate purposes.
Concurrently, Netflix established a senior unsecured delayed draw term loan facility totaling $20 bn—a two-year $10 bn tranche and a three-year $10 bn tranche—to finance merger-related payments, fees, and optional debt refinancing.
Both agreements feature customary covenants, including a minimum 3.0× consolidated EBITDA-to-interest-expense coverage ratio, and allow borrowings at either Alternate Base Rate plus 0–0.10/0.125% (revolver/DDTL) or Term SOFR plus 0.60–1.10/0.850–1.25% (revolver/DDTL), based on credit ratings.

Dec 22, 2025, 11:05 AM

8-K

Netflix price target cut to $120 by Morgan Stanley

NFLX

M&A

Takeover Bid

Netflix agreed to acquire Warner Bros. Discovery for $82.7 billion, offering $27.75 per WBD share, with the WBD board backing the deal over Paramount Skydance’s unsolicited bid.
Morgan Stanley lowered its price target on NFLX to $120 from $150 on Dec. 18, while maintaining an Overweight rating due to strong industry fundamentals.
The stock trades around $94, with a market capitalization of $431 billion, approximately 30% below its recent high as investors digest the Warner Bros. transaction.
On a trailing 12-month basis, Netflix generated $43.4 billion in revenue, achieved ~30% operating margins, a 29% ROIC, and over $11 billion in free cash flow, supporting robust forward EPS growth estimates.

Dec 20, 2025, 6:02 PM

WSJ

Netflix welcomes Warner Bros. Discovery board recommendation on merger

NFLX

M&A

Proxy Vote Outcomes

Netflix welcomed the WBD Board’s recommendation to approve the $27.75 per share merger agreement with Netflix, valuing the transaction at ~$82.7 billion in enterprise value.
The WBD Board urged stockholders to reject Paramount Skydance’s unsolicited bid, stating Netflix’s offer is more certain and superior for long-term value.
The deal includes cash and stock consideration and delivers additional value from the planned Q3 2026 separation of Discovery Global.

Dec 17, 2025, 12:04 PM

Press Release

Netflix acquires Warner Bros for $82.7 billion, maintains theatrical windows

NFLX

M&A

New Projects/Investments

Netflix will acquire Warner Bros. for $82.7 billion, adding a motion picture studio and theatrical distribution network to its business.
Co-CEOs Ted Sarandos and Greg Peters committed to uphold the 45-day exclusive theatrical window for Warner Bros. releases under Netflix ownership.
The deal marks Netflix’s first major entry into the theatrical movie business, transitioning from its previous focus on direct-to-consumer streaming.
Netflix plans to keep Warner Bros.’ legacy brands, including HBO, operating largely as they are with no current redundancies.

Dec 8, 2025, 9:57 PM

Bloomberg

Netflix outlines value creation in Warner Bros acquisition at UBS conference

NFLX

M&A

Netflix co-CEOs detailed a three-phase value creation approach for the Warner Bros deal, focusing on pre-close organic growth, post-close content licensing and HBO brand optimization, and conservative valuation assumptions without crediting unspecified upside.
They committed to retain existing Warner theatrical, TV studio, and HBO operations with current leadership, safeguarding jobs and production models, and contrasted this with competitor-driven cost-cutting synergies.
The company argued regulators should approve the transaction as pro-consumer and pro-creator, noting U.S. TV viewing share would modestly increase from 8% to 9%, remaining well below leading competitors.
Netflix forecast combined content investment rising to $30 billion annually (vs. $18 billion standalone in 2026), leveraging Warner assets to accelerate growth and margin expansion.
Executives highlighted strong advertising momentum with revenues set to more than double, driven by an in-house ad tech stack, expanded targeting, and immersive formats.

Dec 8, 2025, 7:15 PM

Transcript

Netflix outlines rationale for Warner Bros. acquisition at UBS conference

NFLX

M&A

Revenue Acceleration/Inflection

New Projects/Investments

Netflix defends its pending Warner Bros. acquisition, emphasizing no operational redundancies or job cuts, and commits to maintain Warner’s theatrical distribution, TV studio, and HBO branding under existing leadership.
Combined annual content investment expected to reach $30 billion, up from Netflix’s standalone $18 billion, to fuel member retention and organic growth.
Netflix projects the combined entity will account for only 9% of U.S. television viewing hours—still trailing YouTube at 13% and a potential Paramount-WBD merger at 14%—supporting confidence in regulatory approval.
Netflix plans to accelerate revenue streams via advertising ramp-up, integrate Gen AI for enhanced personalization, and leverage IP for gaming expansions, alongside scaling live events and localized content globally.

Dec 8, 2025, 7:15 PM

Transcript

Netflix to Acquire Warner Bros. Assets

NFLX

M&A

Netflix agreed to buy Warner Bros. Discovery’s studio and HBO/HBO Max assets for $72 billion to $82.7 billion, with a $5 billion breakup fee.
The deal grants Netflix control of high-value IP including DC Comics and plans to keep HBO Max operating initially.
Industry groups warn the takeover may reduce competition, cut jobs and wages, raise consumer prices and shrink content diversity.
Netflix may spin off sports properties, complicating media-rights arrangements such as AEW’s contract through 2027.