Netflix Shares Slide 4.14% After $72B Warner Bros. Discovery Acquisition Plan Revealed

Netflix's bold $72 billion play for Warner Bros. Discovery sent shockwaves through markets, with shares dropping sharply as investors grappled with the specter of ballooning debt. The streaming giant plans to finance the deal through a mix of temporary bank financing ($59B) and permanent debt instruments, potentially quintupling its current $15B debt load to $75B post-acquisition.

Regulatory hurdles loom large. Antitrust scrutiny could prove formidable, though Netflix argues competition from YouTube and TikTok justifies the merger. Discovery’s linear TV assets remain conspicuously absent from the deal structure—a potential concession to regulators.

The move underscores Netflix’s relentless push for content dominance, but Wall Street remains skeptical. Credit agencies are circling, with the company’s debt-heavy approach drawing comparisons to Leveraged buyouts of the past. Market reaction suggests investors are pricing in significant execution risk.