Netflix Secures $25 Billion Bank Financing to Fund Warner Bros. Discovery & HBO Max Acquisition

Los Gatos, California: Netflix has taken a decisive step toward reshaping the global entertainment industry by securing up to $25 billion in bank financing to fund its ambitious acquisition of Warner Bros. Discovery’s studios and HBO Max streaming service.

The financing move signals Netflix’s commitment to closing one of the largest media transactions in history, positioning the streaming giant at the center of Hollywood’s most significant consolidation wave.

Details of Netflix’s $25 Billion Financing Package

According to a filing with the U.S. Securities and Exchange Commission (SEC), Netflix has arranged a multi-layered financing structure that includes:

• $5 billion senior unsecured revolving credit facility
• $20 billion in senior unsecured delayed-draw term loans

Major global banks including Wells Fargo, BNP Paribas, and HSBC are among the lenders participating in the financing.

This capital structure provides Netflix with substantial flexibility to fund the acquisition, manage transaction-related expenses, refinance existing debt, and support broader corporate initiatives.

Breakdown of the Credit Facilities

The newly announced financing includes a revolving credit facility that will mature three years after the deal closes, upon termination of the transaction, or by December 19, 2030, whichever occurs first.

Additionally, the delayed-draw term loans are divided into:

• $10 billion two-year delayed-draw term loan facility
• $10 billion three-year delayed-draw term loan facility

These facilities replace a portion of commitments under a previously disclosed bridge-financing agreement tied directly to the Warner transaction.

Netflix’s $72 Billion Agreement with Warner Bros. Discovery

Earlier this month, Netflix emerged as the preferred bidder for Warner Bros. Discovery’s studio operations and HBO Max streaming platform.

The agreement values the deal at approximately $72 billion, or $27.75 per share, combining both cash and stock consideration.

As part of the transaction, Warner Bros. Discovery plans to split into two separate entities, allowing Netflix to acquire the studios and HBO Max while the remaining business operates independently.

Paramount’s Hostile Bid and Industry Tensions

The deal has not gone uncontested. Rival media company Paramount launched a hostile bid for all of Warner Bros. Discovery in an attempt to disrupt Netflix’s acquisition.

However, Warner’s board formally rejected Paramount’s proposal earlier this month, reaffirming its commitment to the Netflix transaction.

This bidding battle highlights the intense competition among media giants as they race to secure premium content libraries and global streaming audiences.

Impact on Netflix’s Balance Sheet

Following the completion of the new financing arrangements, Netflix will have access to an additional $34 billion in total financing, which banks are expected to syndicate or sell as bonds.

While the increased leverage raises questions about long-term debt management, analysts note that Netflix’s strong cash flow, global subscriber base, and pricing power provide a solid foundation to absorb the additional financial burden.

What This Means for HBO Max and Warner Studios

The acquisition could mark a turning point for HBO Max, which has struggled to compete with Netflix’s scale and global reach.

By integrating HBO’s premium content — including blockbuster films, award-winning series, and iconic franchises — Netflix could significantly strengthen its content moat.

Warner Bros.’ extensive film and television library would also bolster Netflix’s long-term intellectual property strategy, providing valuable assets for sequels, spin-offs, and international adaptations.

Global Streaming Industry Set for Major Shift

The Netflix-Warner deal underscores a broader trend of consolidation across the media and streaming sectors.

As production costs rise and subscriber growth slows in mature markets, streaming platforms are increasingly seeking scale, exclusive content, and diversified revenue streams.

If finalized, this transaction could force competitors such as Disney, Amazon, and Apple to reconsider their own content and acquisition strategies.

Regulatory Scrutiny and Next Steps

The deal is expected to face rigorous regulatory review in the United States and internationally, given its size and potential impact on competition.

Regulators will closely examine issues related to market dominance, content distribution, and consumer choice before granting final approval.

Netflix has stated that it remains confident the transaction will meet regulatory standards and close as planned.

Conclusion

Netflix’s decision to secure $25 billion in bank financing marks a bold and transformative move in the global entertainment industry.

If successfully completed, the acquisition of Warner Bros. Discovery’s studios and HBO Max could redefine streaming competition, reshape Hollywood power dynamics, and solidify Netflix’s position as the world’s leading entertainment platform.

As investors, regulators, and consumers watch closely, this deal may well become a defining moment in the future of media.