Netflix’s Q4′ 2025 report outlined its confidence to gain regulatory approval for its WBD agreement despite Paramount continuing to challenge.
Netflix has amended its Warner Bros. Discovery (WBD) merger agreement to an all-cash transaction as outlined in the company’s fourth quarter 2025 report.
The all-cash offer values at $27.75 per WBD share, replacing the previous mix of cash and Netflix stock. Netflix states the revised offer expedites the timeline to WBD shareholders vote and “greater certainty of value that will be delivered at closing”.
The change in offer structure comes amid Paramount Skydance’s persistence in challenging the Netflix-WBD merger agreement, which was announced on December 5, 2025.
Paramount is suing WBD as outlined in a letter sent to WBD shareholders as CEO David Ellison believes the company’s $30-per-share all-cash offer outmatches Netflix’s. The letter also argues WBD failed to provide financial information to its shareholders in order to make an informed decision.
The letter comes after WBD rejected Paramount’s tender offer in December 2025, reiterating its support for the Netflix acquisition. At the time, WBD said Paramount’s $108.4bn bid was non-binding and exposed shareholders to significant execution, financing and governance risks.
Despite Paramount refusing to back down, Netflix CEO Ted Sandaros remains confident the deal will be approved by the relevant regulatory authorities.
“We have already made progress to securing the necessary regulatory approvals,” he said during the fourth quarter earnings call.
“We have submitted our HSR (Hart-Scott-Rodino) filing, we’re working closely with WBD, the regulatory authorities, including the US Department of Justice to the European Commissions.”
Netflix took out a short-term temporary loan of $59bn to support the WBD transaction, which is valued at $82.7bn. On January 19, Netflix then increased its loan commitments to $8.2bn to support the new all-cash proposal.
Netflix stated the acquisition of WBD’s film and television IP library will provide the company with greater value for customers and offer more personalised, flexible subscription offers to meet global diverse audience preferences.
“We’re confident we are going to be able to secure all the approvals because this deal is pro-consumer, it is pro-innovation, it is pro-worker, it is pro-creator, and it is pro-growth,” said Sandaros.
“WBD has three core businesses we currently do not have. So we’re going to need those teams, who have experience and expertise and want them to stay on and continue those businesses.
“We’re expanding content creation, not collapsing it. Our deal strengthens the marketplace. It ensures healthy competition that will benefit consumers and help to protect and create jobs, that is why we are confident of the approval.”
Q4’ 2025 figures
Netflix marginally beat out LSEG analyst revenue predictions for the fourth quarter ending December 31, 2025.
Q4’ 2025 revenue was $12.05bn, beating analyst prediction of $11.97bn. Q4 revenue also increased 4.7% from $11.51bn in Q3’ 2025, and also grew 17.6% year-over-year from $10.24bn generated in Q4’ 2024.
Netflix attributes the year-over-year revenue growth due to the higher subscription pricing. Standard ad-free plans were raised from $15.49 to $17.99 per month, ad-supported plans from $6.99 to $7.99, and premium plans from $22.99 to $24.99 per month.
When asked during the earnings call whether the WBD acquisition would see an increase in subscription plans, Netflix Co-CEO Greg Peters said “there is no impact or change to our approach running the business in that regard”.
The streaming giant’s global subscriber user base continued to grow to 325 million by the end of 2025, while also making $1.5bn in advertising revenue.
Live sports strategy outlook
Netflix has now broadcasted 200 live events with sporting events playing a major role in this new foray for the streaming service.
In 2025, Netflix broadcasted live boxing events, such as Canelo Alvarez vs. Terence Crawford and Anthony Joshua vs. Jake Paul, while also broadcasting two NFL games on Christmas Day as part of its three-year deal with the league.
The Detroit Lions–Minnesota Vikings game became the most streamed NFL game in US history as Netflix announced it was the home of the three most streamed games in NFL history too.
The company is also broadening its live programming capabilities in local international markets. Netflix will broadcast 47 live games in Japan for the 2026 World Baseball Classic (WBC), a first for the streaming company outside the US.
Netflix has also acquired the US rights to livestream the 2027 and 2031 Women’s FIFA World Cup competitions.
Despite significantly increasing its investment into live sports rights, Sandaros said viewing figures represent a “relatively small portion” of its 200 billion total view hours.
“These events typically have outsized positive impacts on the business around conversation and acquisition,” said Sandaros. “We are also starting to see benefits to retention as well.
“We remain really excited about (live sports events) and that is why we are building out and strengthening that offer.”
