Netflix Accumulates $59 Billion in Debt Following Acquisition Agreement With Warner Bros. Discovery

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  Newsroom

• December 06, 2025

• Newsroom

Netflix Accumulates $59 Billion in Debt Following Acquisition Agreement With Warner Bros. Discovery

Netflix is facing a total debt load of approximately $59 billion after securing an extensive financing package to support its landmark agreement to acquire Warner Bros. Discovery, according to reporting from Bloomberg. The structure includes one of the largest unsecured bridge loans ever arranged, with financial commitments from Wells Fargo, BNP Paribas, and HSBC, underscoring renewed momentum in large-scale media mergers and acquisitions.

A $72 Billion Deal Reshaping the Global Entertainment Industry

The agreement, valued at $72 billion, or roughly $27.75 per share, merges the world’s largest streaming platform with one of Hollywood’s most storied studios. As reported by Fortune and Yahoo Finance, the transaction aims to create a new entertainment giant, combining Netflix’s global distribution footprint with Warner Bros.’ extensive content library.

Analysts expect the combined entity to significantly alter competitive dynamics across film, television, and digital streaming, bolstering Netflix’s long-term strategy to deepen its control over premium content production and intellectual property.

Record-Setting $29.5 Billion Bridge Loan Led by Wells Fargo

According to Bloomberg, the deal is supported by a $29.5 billion unsecured bridge facility led by Wells Fargo, marking the largest investment-grade bridge loan ever arranged by the bank. The loan provides temporary liquidity to complete the acquisition while Netflix prepares long-term debt issuances to replace the short-term facility.

BNP Paribas and HSBC also participated in the financing package, contributing to what NBC News described as one of the most significant banking commitments to a media acquisition in recent years.

As the bridge transitions to permanent financing, analysts cited by NBC News estimate Netflix’s overall debt obligations will climb to approximately $59 billion, raising questions about leverage, interest exposure, and long-term balance sheet resilience.

Strategic Rationale and Market Implications

The acquisition gives Netflix direct ownership over Warner Bros.’ legacy franchises, including DC, HBO Originals, and Warner Bros. Pictures, reducing reliance on licensing agreements and strengthening vertical integration across production and global distribution.

Industry observers quoted by Yahoo Finance note that while the combined assets offer considerable long-term revenue potential, the elevated debt level introduces new financial pressure at a time when streaming competition and content-production costs continue to intensify.

Official Statements

While Netflix and Warner Bros. Discovery have not released detailed public statements beyond regulatory filings, documents reviewed by Bloomberg indicate a multi-stage refinancing plan involving long-term corporate notes and potential asset-backed structures.

Financial analysts remain divided: some emphasize the transformative strategic value of the acquisition, while others warn that the company’s increased leverage may constrain operational flexibility in the coming years.

About Netflix

Netflix (NASDAQ: NFLX) is the world’s largest streaming platform, serving more than 270 million global subscribers with original series, films, documentaries, and interactive content.

About Warner Bros. Discovery

Warner Bros. Discovery is a global entertainment conglomerate encompassing Warner Bros. Pictures, HBO, CNN, DC Studios, Discovery Networks, and an extensive film and TV archive.

With information from: Bloomberg ,Fortune, Yahoo Finance, and NBC News