Overview
- Netflix revised its Warner Bros. Discovery offer to an all‑cash $27.75 per share deal, with Reuters reporting the target’s board preferred Netflix over a higher Paramount proposal due to lower debt risk.
- The company paused its share repurchase program to build cash for the transaction and flagged roughly $275 million of acquisition‑related costs front‑loaded in early 2026.
- Fourth‑quarter 2025 results slightly topped estimates at $12.05 billion in revenue and $0.56 EPS as shares fell about 4%–5% after hours following the update.
- Management guided 2026 revenue to $50.7–$51.7 billion, highlighted an ad business goal of about $3 billion this year, and reported global subscriptions above 325 million.
- Analysts at firms including KeyBanc, Wedbush, BMO, Bernstein, and Goldman Sachs trimmed price targets, citing deal uncertainty and softer near‑term profit expectations.