Netflix has arranged $59 billion in financing from major Wall Street banks to back its $72 billion acquisition of Warner Bros. Discovery, with a $5.8 billion breakup fee attached—among the largest in corporate history. The move signals a major shift in the streaming and media landscape.
- Netflix secured $59 billion in financing for its $72 billion acquisition of Warner Bros. Discovery
- A $5.8 billion breakup fee is part of the agreement, one of the largest ever recorded
- The deal includes a mix of term loans and bond issuances from major Wall Street banks
- Targeted closing window is early 2026, pending regulatory and shareholder approvals
- The transaction could reshape the streaming and media landscape through vertical integration
- Market reaction shows increased investor confidence in Netflix’s strategic expansion
Netflix has mobilized $59 billion in committed financing from leading investment banks to support its proposed $72 billion acquisition of Warner Bros. Discovery, according to public disclosures. The deal, if completed, would rank among the largest corporate transactions in media history and seek to consolidate streaming assets under a single platform. As part of the agreement, Netflix has agreed to a $5.8 billion breakup fee, a clause designed to protect both parties in the event of deal termination and one of the most significant in recent financial history. This fee underscores the high stakes and strategic importance Netflix places on securing Warner Bros. Discovery's content library and production infrastructure. The financing package includes a mix of term loans and bond issuances, enabling Netflix to maintain balance sheet stability while pursuing aggressive growth through vertical integration. The transaction remains subject to regulatory approvals and shareholder consent, with a targeted closing window in early 2026. The scale of the financing and the breakup fee reflect growing investor confidence in Netflix’s long-term strategy to expand beyond subscription streaming into full-scale media ownership. Market analysts note the deal could accelerate consolidation across the entertainment sector, particularly as platforms seek to reduce reliance on third-party content licensing. Netflix's stock has seen moderate gains in anticipation, while Warner Bros. Discovery’s shares have fluctuated in line with merger sentiment.