Netflix Refinances $25B of Loan Package for Warner Bros Acquisition

Netflix has strengthened the financing behind its agreed acquisition of Warner Bros. Discovery’s studios and streaming business, refinancing a slice of a $59 billion bridge loan with $25 billion of new bank commitments disclosed Monday. The package includes a $5 billion revolving credit facility and two $10 billion delayed-draw term loans, leaving about $34 billion of the bridge facility still set for syndication, Reuters reported.

The move shifts part of the deal’s funding from short-term bridge debt to longer-dated bank facilities, a step that can lower borrowing costs and reduce refinancing risk while banks place the remaining loan with other lenders. Netflix first arranged the $59 billion bridge on Dec. 4 to cover the cash portion of the transaction, fees and other corporate purposes, then began swapping pieces of that borrowing into committed facilities.

Netflix and Warner Bros. Discovery announced on Dec. 5 a definitive cash-and-stock agreement valuing the assets at $82.7 billion enterprise value, with Warner Bros. Discovery shareholders set to receive $23.25 in cash and about $4.50 in Netflix stock per share. The transaction is designed to close after Warner Bros. Discovery separates its Global Linear Networks unit, Discovery Global, a spin-off the companies have said is targeted for the third quarter of 2026. Netflix has told investors it expects a 12–18 month regulatory process and has agreed to a $5.8 billion reverse termination fee tied to regulatory failure.

Rival bidders have kept pressure on the process. Paramount Skydance has pursued a hostile, all-cash offer and this week added an “irrevocable” personal guarantee from Oracle co-founder Larry Ellison, the Associated Press reported, while extending its offer deadline to Jan. 21, 2026. Reuters has reported that a switch away from the Netflix agreement would trigger a breakup payment by Warner Bros. Discovery.

Regulators and plaintiffs have begun lining up arguments against the tie-up. A consumer class action filed in federal court claims the deal would remove HBO Max as a close streaming rival and give Netflix control of major franchises, Reuters reported. In Europe, EU antitrust chief Teresa Ribera has said the Commission may assess the deal’s effects. Netflix has argued the market remains competitive and has pledged to keep Warner’s creative operations intact, including maintaining theatrical windows for Warner Bros. films.