How Netflix’s $59B Bridge Loan Fuels Its Warner Bros Acquisition & Debt Strategy

Netflix’s acquisition of Warner Bros Discovery’s studios and streaming businesses represents a landmark consolidation in the entertainment and streaming industry. Declared on December 5, 2025, the agreement values the Netflix-side assets at an enterprise value of $82.7 billion (equity $72.0 billion) [4]. Bear in mind that this excludes Warner Bros Discovery’s “Global Networks” division—TV networks like CNN, TBS, and others—which will be spun off into a separate public entity called Discovery Global by Q3 2026. [4][2]

To finance the deal, Netflix has arranged a massive short-term (bridge) unsecured loan facility totaling about $59 billion from banks including Wells Fargo, BNP Paribas, and HSBC. Wells Fargo’s commitment alone of ~$29.5 billion represents one of the largest by a single bank for an investment-grade bridge loan. [1][2][3] That bridge will ultimately be replaced by a mix of longer-term financing: up to $25 billion in bonds, $20 billion in delayed-draw term loans, and a $5 billion revolving credit facility. [2][3]

Financially, the acquisition will sharply increase Netflix’s leverage. As is, Netflix had ~$14.5 billion in long-term debt; including the bridge loan and taking on roughly $10-11 billion of WBD’s debt, its indebtedness will spike. Under current estimates, pro forma net debt could reach ~$75 billion, pushing net debt/EBITDA to approximately 3.7× initially [7]. However, analysts expect that with disciplined deleveraging through cost savings ($2-3 billion/year by year three), growing EBITDA, and strategic refinancing, leverage should decline toward mid-2× by 2027. [1][7]

Strategically, the acquisition is a bold move: it commits Netflix to an even larger content library (HBO, DC Studios, storied franchises) and expands its subscriber base well beyond 300 million overall. But it comes with heightened execution risks—integrating operations, preserving theatrical releases, managing regulatory hurdles (antitrust in multiple jurisdictions) and navigating the ongoing competitive bid from Paramount Skydance, which offers $30/share, all cash, for the entire WBD (including Global Networks). [6][9][17]

Open questions abound: Can Netflix manage its cash flows and cost savings aggressively enough to satisfy ratings agencies? Will regulatory bodies in the U.S., EU, U.K., and elsewhere approve such a consolidation—especially given concerns about market power and dominance? Could Paramount oust Netflix with its cash offer or force modifications to the deal? And how will Discovery Global fare as a standalone asset post-spin off?