Netflix takes a major step toward funding its proposed takeover of Warner Bros. Discovery’s film and streaming assets by restructuring part of its bridge loan. In a regulatory filing dated December 22, 2025, the company said it replaced a portion of its $59 billion bridge facility with a $5 billion revolving credit line and two $10 billion delayed‑draw term loans.
After the refinancing, approximately $34 billion in bridge debt still needs to be syndicated. The proceeds will fund the cash portion of the Warner Bros. deal and cover transaction fees; Netflix noted that it may also use the funds to refinance other liabilities and for general corporate purposes.
Bridge loans are commonly used to plug funding gaps in large transactions and are later replaced with longer‑term debt. Netflix has already signaled that it intends to swap much of the temporary $59 billion facility for up to $25 billion in bonds, $20 billion in additional delayed‑draw term loans, and a $5 billion revolving credit facility, using operating cash flow to repay some of the borrowings.
The company’s improved balance sheet and investment‑grade credit ratings from Moody’s and S&P have positioned it to raise this record‑sized debt package. Lenders involved in the bridge financing reportedly include Wells Fargo, BNP Paribas, and HSBC, according to banking sources.
Netflix’s loan restructuring comes amid a heated contest for Warner Bros. Discovery. Earlier in December, Netflix agreed to acquire the studio and the HBO Max streaming service in a cash‑and‑stock deal valued at $72 billion. Only days later, Paramount Skydance launched an all-cash offer valued at $108.4 billion, or about $30 per share, for the entire Warner Bros. company.
Paramount’s bid promised higher immediate value but would require substantial debt commitments of about $54 billion, which Warner Bros’ board deemed too risky. Despite the high price, the board reaffirmed its support for Netflix, citing greater strategic benefits and financing certainty.
The bidding war illustrates how valuable Warner Bros.’ assets are. The company controls storied film and television libraries, including DC Studios, the Harry Potter franchise, and HBO.
Paramount believes owning all of Warner Bros., including cable networks such as CNN and Discovery, would expedite regulatory review. Still, Warner Bros. directors favor a separation of businesses and a more targeted sale.
Analysts see Netflix’s combination of cash and stock, along with a spin‑off of Warner Bros.’ legacy networks, as a less risky path that still offers shareholders significant upside.
Netflix still faces challenges. The Paramount proposal has kept pressure on Netflix to maintain its investment-grade credit rating while funding a deal that could push its debt load to around $75 billion.
If the Paramount bid ultimately prevails, Netflix would owe Warner Bros. a termination fee reported at about $5.8 billion, which could erode shareholder value. However, many investors believe Netflix’s growing revenue and free cash flow provide room to absorb the financing and still deleverage quickly.
A key feature of Netflix’s agreement is that the transaction will close only after Warner Bros. completes the planned spin‑off of its Global Networks unit. Warner Bros. announced in June 2025 that it will split into two publicly traded companies, Streaming & Studios and Global Networks, to sharpen strategic focus and unlock shareholder value.
Television, Motion Pictures, DC Studios, HBO, and HBO Max, while the Global Networks division will include cable brands such as CNN, TNT Sports, and Discovery. The company expects the separation to be completed by mid‑2026, subject to board approval and regulatory clearance. According to the Netflix filing, the takeover of Warner Bros.’ assets is scheduled to close after the spin‑off in the third quarter of 2026.
Also Read: Hollywood’s Boldest Bet: Netflix Digging $5.8 B as Exit Insurance