Netflix surpassed expectations with a narrow earnings beat and confirmed its global subscriber base reached 325 million, while simultaneously adjusting its acquisition proposal for Warner Bros. Discovery assets amid escalating competition from Paramount and Skydance's hostile bid.
- Netflix reported 325 million global subscribers as of Q4 2025.
- Revenue reached $3.4 billion, a 6% increase from the prior year.
- Operating margin improved to 29.7% in the quarter.
- Netflix revised its offer for Warner Bros. Discovery assets amid Paramount-Skydance takeover attempt.
- Shares rose 2.1% following earnings release.
- Strategic adjustments reflect evolving dynamics in media M&A activity.
Netflix delivered a modest earnings increase, narrowly exceeding Wall Street forecasts in its latest quarterly report, as the company reported a global subscriber count of 325 million. This figure marks a significant milestone, reflecting continued international expansion and resilience in streaming demand despite macroeconomic headwinds. The company also disclosed updated financial guidance, citing strong retention rates and steady growth in average revenue per user. The announcement comes at a pivotal moment in the media industry, as Netflix revised its strategic approach to acquiring assets from Warner Bros. Discovery. In response to a hostile takeover attempt led by Paramount and Skydance, which has triggered intense scrutiny in the entertainment sector, Netflix adjusted its offer structure to strengthen its competitive position. The changes include improved terms and a revised timeline designed to enhance deal certainty and shareholder appeal. Financially, Netflix reported quarterly revenue of $3.4 billion, up 6% year-over-year, driven by premium subscription tiers and increased content investment. The company’s operating margin expanded to 29.7%, underscoring disciplined cost management. These figures highlight Netflix’s ability to maintain profitability even as it navigates a highly contested merger environment. Market participants reacted cautiously, with Netflix shares rising 2.1% post-earnings. Investors are closely watching how the company balances acquisition ambitions with capital allocation, particularly as other major players in the industry reassess their own portfolios. Analysts note that Netflix’s strategic pivot could influence broader consolidation trends across the global media landscape.