Netflix earnings eyed as Warner Bros bid takes spotlight
Netflix reports fourth-quarter results on Tuesday, but investors are more focused on its effort to buy Warner Bros, a move that could reshape Hollywood’s streaming landscape.
The company has proposed an $82.7 billion deal for Warner Bros’ studio and streaming assets, seeking access to major franchises such as Harry Potter, Game of Thrones and Friends. The acquisition would also help fill the gap left by the final season of Stranger Things, which delivered some of Netflix’s strongest holiday-quarter viewing in years alongside NFL games and new film releases, News.Az reports, citing Reuters.
Analysts say the earnings call will be dominated by questions about the deal. Netflix is competing with Paramount Skydance, which has offered $108.4 billion for the entire Warner Bros Discovery group, including cable networks Netflix does not want. A drawn-out bidding battle and regulatory scrutiny in the US and Europe are expected.
If successful, the acquisition would make Netflix the world’s largest streaming platform with roughly 428 million subscribers. Investors will press executives on how the company plans to address antitrust concerns and integrate major franchises into its content pipeline.
Shares have fallen for four straight months amid uncertainty over the bid, and nearly one-third of analysts have trimmed price targets since the announcement.
Meanwhile, Netflix is still searching for meaningful returns from two expensive expansions — advertising and videogames. Analysts expect live sports and events to drive growth, after record US viewership for Christmas Day NFL games and an expanded WWE rights deal.
Revenue for the October–December quarter is forecast to rise nearly 17% to $11.97 billion, with analysts projecting about 13% growth in 2026. Third-party estimates suggest Netflix ended the year with more than 327 million users.
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