Netflix (NASDAQ:NFLX) shares dipped in after-hours trading Tuesday despite the streaming giant beating revenue expectations and crossing the 325-million subscriber milestone, as investors weighed the massive financial commitments of its pending Warner Bros. Discovery acquisition.
The company reported fourth-quarter revenue of $12.1 billion, slightly ahead of the $11.97 billion analysts expected.
The results were bolstered by a historic viewership surge in December, led by the final season of Stranger Things, which amassed 15 billion viewing minutes.
Engagement was further amplified by Netflix's Christmas Day NFL double-header and the release of Wake Up Dead Man: A Knives Out Mystery.
For the full year 2026, Netflix issued a bullish forecast, projecting revenue between $50.7 billion and $51.7 billion and a "rough doubling" of its advertising revenue.
However, the spotlight remained on the company's aggressive $82.7 billion pursuit of Warner Bros. Discovery’s (NYSE:WBD) studio and streaming assets.
To fend off a rival $108.4 billion hostile bid from Paramount Skydance, Netflix amended its agreement on Tuesday to an all-cash offer of $27.75 per share.
The shift to cash is designed to provide WBD shareholders with immediate value certainty and expedite a vote, which Netflix expects as early as April 2026.
To fund the deal, Netflix has secured a massive $67.2 billion bridge loan—including an $8.2 billion increase announced Monday—to cover the studios and library assets including Harry Potter, DC Comics, and Game of Thrones.