Netflix has seen its shares fall sharply regardless of upbeat monetary outcomes revealed hours after it simplified a proposal for Warner Bros in a bid to get the deal over the road.
The world’s largest streaming service by subscriber numbers stated paid households had swelled to a document 325 million over the ultimate three months of 2025. That they had stood at 300 million a 12 months earlier.
Its fourth quarter outcomes additionally confirmed revenues of $12.1bn throughout the essential interval, which incorporates Christmas, beating analysts’ estimates.
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However shares had been down 5% in after-hours buying and selling following a flat efficiency throughout the day.
This was defined, analysts stated, by its forward-looking steering on income and income lacking expectations at a time of nerves over its transfer for Warner Bros.
Netflix stated earlier on Tuesday it had modified the phrases of its $72bn (£53.5bn) provide for Warner Bros Discovery’s (WBD’s) studios, again catalogue and HBO Max streaming division.
The bid – already backed by WBD – now comprised solely money, eradicating a component of the deal that included Netflix shares, it stated.
The full worth of the deal, $82.7bn (£61.4bn), is unchanged.
The sooner cash-and-shares provide had been seen as including complication, particularly as shares provide no assure of future worth within the face of a rival, hostile, all-cash bid from Paramount Skydance.
WBD and Netflix stated in a joint assertion that the revised Netflix provide “simplifies” the acquisition, “gives better certainty of worth” for WBD stockholders and an “expedited timeline” for WBD stockholders to vote on Netflix’s proposal.
Throughout a video convention with analysts, co-chief government Ted Sarandos stated he was “assured” of securing all the required regulatory approvals globally, amid considerations together with over current streaming market dominance.
The deal might be put to a shareholder vote in April.
The bid on the desk from Paramount Skydance is totally different in that it seeks to purchase the entire of WBD for $108.4bn (£80bn) and has been rejected by the corporate.
Paramount argues that its bid gives superior worth. WBD says there are “deficiencies” in that bid.
Its tender provide to amass WBD – which provides WBD shareholders the chance to lend their help – is presently scheduled to run out late on Wednesday however is predicted to be prolonged.
Paramount might determine to revise its personal phrases or provide however the largest clue to its intentions got here when it confirmed plans for a so-called proxy combat in a bid to win the day.
This quantities to a marketing campaign looking for a filter out of the Warner Bros board in favour of administrators who help its personal bid.
