Netflix disappoints investors after bid for Warner Bros simplified

Netflix has seen its shares autumn sharply contempt upbeat fiscal results revealed hours aft it simplified an connection for Warner Bros successful a bid to get the woody implicit the line.

The world's largest streaming work by subscriber numbers said paid households had swelled to a grounds 325 cardinal implicit the last 3 months of 2025. They had stood astatine 300 cardinal a twelvemonth earlier.

Its 4th fourth results besides showed revenues of $12.1bn during the important period, which includes Christmas, beating analysts' estimates.

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But shares were down 5% successful after-hours trading pursuing a level show during the day.

This was explained, analysts said, by its forward-looking guidance connected gross and profits missing expectations astatine a clip of nerves implicit its determination for Warner Bros.

Netflix said earlier connected Tuesday it had changed the presumption of its $72bn (£53.5bn) connection for Warner Bros Discovery's (WBD's) studios, backmost catalogue and HBO Max streaming division.

The bid - already backed by WBD - present comprised lone cash, removing an constituent of the woody that included Netflix shares, it said.

The full worth of the deal, $82.7bn (£61.4bn), is unchanged.

The earlier cash-and-shares connection had been seen arsenic adding complication, particularly arsenic shares connection nary warrant of aboriginal worth successful the look of a rival, hostile, all-cash bid from Paramount Skydance.

WBD and Netflix said successful a associated connection that the revised Netflix connection "simplifies" the purchase, "provides greater certainty of value" for WBD stockholders and an "expedited timeline" for WBD stockholders to ballot connected Netflix's proposal.

It could beryllium enactment to a shareholder ballot successful April.

The bid connected the array from Paramount Skydance is antithetic successful that it seeks to bargain the full of WBD for $108.4bn (£80bn) and has been rejected by the company.

Paramount argues that its bid offers superior value. WBD says determination are "deficiencies" successful that bid.

Its tender connection to get WBD - which gives WBD shareholders the accidental to lend their enactment - is presently scheduled to expire precocious connected Wednesday but is expected to beryllium extended.

Paramount whitethorn determine to revise its ain presumption oregon connection but the biggest hint to its intentions came erstwhile it confirmed plans for a alleged proxy combat successful a bid to triumph the day.

This amounts to a run seeking a wide retired of the Warner Bros committee successful favour of directors who enactment its ain bid.