The numbers
$72 billion — Netflix ups its merger acquisition of Warner Bros. Discovery to an all-cash offer, changing the previously agreed-upon offer of cash and stock. The deal is valued at $27.75 per WBD share.
$1.5 billion — Netflix’s 2025 ad revenue.
$45.2 billion — Netflix’s overall revenue for 2025, up +16% year over year.
325 million— Netflix’s new subscriber count.
The watercooler talk
In its Q4 2025 earnings report on Tuesday, Netflix shed light on its updated deal for Warner Bros. Discovery’s streaming and studio assets. The streamer originally announced in December 2025 that it was in the process of acquiring WBD’s assets in a cash-and-stock deal valued at around $82.7 billion (equity value of $72.0 billion). However, the streamer has now updated the offer to be all cash.
“The revised transaction structure expedites the timeline to a WBD shareholder vote and provides greater certainty of value that will be delivered at closing,” the company said in a letter to shareholders.
In the letter, the streamer also outlines areas of opportunity, including developing WBD’s IP and leveraging HBO Max to create personalized, flexible subscription plans. The company also noted it was planning to expand production capacity in the U.S. and abroad.
Among other highlights from its earnings report, Netflix revealed that it now has 325 million paid memberships, up from the 302 million it reported for Q4 2024. In addition, the streamer noted that its ad revenue grew by more than 2.5x from 2024, reaching over $1.5 billion. In Q3 2025, Netflix announced it had doubled its upfront commitments in the latest cycle and recorded its best ad sales quarter. The streamer is also rolling out AI ad formats, bringing advertisers closer to the content.
The key quote
“Netflix and Warner Bros. are highly complementary businesses, and together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry. This will allow us to offer more choice and greater value to consumers.” — Netflix letter to shareholders
