NETFLIX (NFLX) Company Report

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.

2 days ago

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.

4 days ago

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.

7 days ago

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.

Dec 5, 2025, 2:14 PM

WSJ

Netflix announces acquisition of Warner Bros.

NFLX

M&A

Netflix will acquire Warner Bros., combining its streaming service with Warner Bros.’ film & TV studios, HBO Max and extensive IP library to enhance Netflix’s content offering.
The transaction values Warner Bros. at $82.7 B enterprise value, including $72.0 B equity value and $10.7 B net debt.
Funding comprises $10.3 B cash on hand, $50.0 B acquisition debt and $11.7 B equity consideration.
Expected to close in 12–18 months subject to Warner Bros. Discovery shareholder and regulatory approvals.
Management expects the deal to be accretive to GAAP EPS by the second full year, deliver $2–3 B of run-rate cost savings by year three, and raise CY26E EBITDA to $5.8 B post-synergies.

Dec 5, 2025, 1:00 PM

Presentation

Netflix to acquire Warner Bros. for $27.75 per share

NFLX

M&A

Netflix will acquire Warner Bros. for $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock, valuing Warner Bros. equity at $72.0 B and enterprise value at $82.7 B.
The deal will be financed with $10.3 B cash on hand, $50.0 B of new debt, and $11.7 B of equity consideration.
Closing is expected within 12–18 months, subject to Warner Bros. Discovery shareholder and regulatory approvals.
Netflix forecasts $2–3 B of run-rate cost savings by year three and expects the transaction to be accretive to GAAP EPS by the second full year, while maintaining investment-grade credit ratings.

Dec 5, 2025, 1:00 PM

Presentation

Netflix announces agreement to acquire Warner Bros.

NFLX

M&A

Netflix will acquire Warner Bros. film and TV studios, HBO Max and HBO in a cash-and-stock deal valued at $82.7 billion enterprise value; WBD shareholders receive $23.25 cash and $4.50 Netflix shares per common share.
Transaction is expected to close in 12–18 months, following WBD’s separation of its Global Networks division (Discovery Global) in Q3 2026 and subject to regulatory and shareholder approvals.
Financing mix of cash on hand, new debt and stock implies an equity value of $72 billion; Warner Bros. is projected to generate $3 billion EBITDA in 2026 plus $2.5 billion in annual cost synergies, yielding a post-synergy EV/EBITDA of 14.3×.
Deal is expected to be GAAP EPS–accretive by year two; pro forma leverage will be elevated at close with a plan to return to investment-grade targets within two years while maintaining share repurchases.

Dec 5, 2025, 1:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for NETFLIX.

Q3 2025

Oct 21, 2025

→

Q2 2025

Jul 17, 2025

→

View All Transcripts

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Greg Peters say about margins?What are NETFLIX's strategic priorities?How is NETFLIX positioned vs competitors?How did NETFLIX do last quarter?

NETFLIX (NFLX)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Executives

Greg Peters

Ted Sarandos

David Hyman

Spencer Neumann

Board Members

Ann Mather

Anne Sweeney

Brad Smith

Ellie Mertz

Jay Hoag

Leslie Kilgore

Mathias Döpfner

Reed Hastings

Richard Barton

Strive Masiyiwa

Susan Rice

Analyst Coverage

Benjamin Swinburne

Douglas Anmuth

Jessica Reif Ehrlich

Richard Greenfield

Justin Patterson

Robert Fishman

Alan Gould

Steven Cahall

Barton Crockett

Brian Pitz

Michael Morris

Daniel Salmon

Dan Kernos

David Joyce

Jason Helfstein

John Hudlick

Steve Cahill

Tom Champion

Vikram Kesavabotla

Michael Nathanson

Robert Fishman

Spencer Wang

Vikram

Latest news

Earnings Transcripts

Q3 2025

Q2 2025

Ask Fintool AI Agent