Netflix has taken significant steps to acquire Warner Bros.

Netflix's Strategic Move: Financing for Warner Bros. Acquisition

Netflix has restructured part of its $59 billion bridge loan to secure the financing needed for a potential acquisition of Warner Bros. Discovery.

Refinancing Process

According to statements made on Monday, the renowned streamer managed to secure a $5 billion revolving credit facility and two $10 billion delayed-draw term loans to strengthen its credit options for the Warner Bros. offer.

Strategy Behind the Acquisition Plan

At the beginning of December, Netflix officially announced its plan to acquire Warner Bros., HBO, and HBO Max for a total of $82.7 billion. This move has led to significant competition in the entertainment sector alongside a new offer from Paramount Skydance.

Warner Bros. Statement

Last week, Warner Bros. advised its shareholders to reject Paramount's offer in favor of continuing with the original agreement with Netflix. The Warner Bros. management described Paramount's bid, which includes a $54 billion debt commitment for the entire company, as 'insufficient and low-quality'.

Regulatory Hurdles and Political Backlash

Despite obtaining approval from Warner Bros.' board of directors, Netflix has been warned that it may face various regulatory and political hurdles in finalizing the acquisition. Democratic Senator Elizabeth Warren from Massachusetts referred to this acquisition attempt as an 'antitrust nightmare'. Netflix has attempted to assure its employees that this acquisition would not lead to studio closures.