Netflix Refinances Part of Bridge Loan from Warner Bros Discovery Deal

• Netflix beat rival bidders including Paramount Skydance's $108.4 billion all-cash offer, with Warner Bros board citing 'superior strategic benefits and financing certainty'
• The acquisition includes HBO, HBO Max, and other streaming and studio assets that Warner Bros is separating from its legacy networks business
• Bridge loan was initially secured December 4 to ensure funding certainty, with proceeds covering cash portions of the deal and related expenses

Netflix Refinances $25B of $59B Bridge Loan for Warner Bros Discovery Acquisition

Netflix has refinanced a portion of its $59 billion bridge loan facility supporting its planned acquisition of Warner Bros Discovery's film, TV studios, and streaming assets, according to a Monday regulatory filing. The refinancing includes a $5 billion revolving credit facility and two $10 billion delayed-draw term loans, totaling $25 billion, leaving approximately $34 billion to be syndicated.

The streaming giant won a competitive auction for WBD's assets, which include HBO and HBO Max, beating an unsolicited all-cash offer of $108.4 billion ($30 per share) from Paramount Skydance. Despite Paramount's higher immediate value proposition, Warner Bros' board maintained support for the Netflix deal, citing superior strategic benefits and financing certainty.

The transaction is expected to close after Warner Bros completes the spinoff of its Global Networks unit in Q3 2026. This separation, announced in mid-2025, aims to divide high-growth streaming and studio assets from legacy networks, enabling focused strategies for each business segment.

Netflix initially secured the $59 billion bridge loan on December 4 to ensure funding certainty. Bridge loans provide short-term transaction funding and are typically replaced with longer-term, more cost-effective debt instruments. Proceeds will fund the cash portion of the acquisition, related fees and expenses, and may support refinancing activities and general corporate purposes.

This deal represents one of the largest media consolidations in history, significantly expanding Netflix's content library and production capabilities while integrating HBO's premium streaming platform. The refinancing activity demonstrates Netflix's progress in structuring permanent financing for the acquisition, a critical step in completing this transformative transaction.