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Netflix’s Slide Deepens as Warner Bros. Discovery Deal Raises New Questions

Investors are reassessing Netflix because the Warner Bros. Discovery purchase introduces sizable financing and integration questions.

Overview

  • Netflix shares trade about 38% below their 52-week high as of Feb. 2, reflecting mounting investor caution.
  • The company is pursuing a takeover of Warner Bros. Discovery’s film and TV studios, HBO Max, and its content library at an enterprise value of $82.7 billion.
  • Financing the transaction could add roughly $52 billion of debt, heightening balance-sheet and execution risk.
  • Netflix reported 325 million members and $45 billion in 2025 revenue, highlighting significant scale and brand reach.
  • Fourth-quarter operating margin reached 24.5% as the company pushes into advertising, live events and sports, gaming, and podcasts.