Online streaming giant Netflix is laying the groundwork for its deal to acquire Warner Bros. Discovery’s studios and HBO Max streaming service, securing up to USD 25 billion in bank financing to fund the acquisition. The company has reportedly entered into a USD 5 billion senior unsecured revolving credit facility and two senior unsecured delayed-draw term-loan facilities totalling USD 20 billion, according to a December 22 filing with the United States Securities and Exchange Commission (SEC).
Wells Fargo, BNP Paribas and HSBC are among the banks involved in the financing, further consolidating Netflix’s position as Warner’s chosen bidder in Hollywood’s battle over the entertainment company’s future. Netflix, in early December 2025, agreed to pay USD 72 billion (or USD 27.75 a share) in cash and stock for Warner’s studio and HBO Max streaming business after the entertainment company splits itself into two.
Rival suitor Paramount launched a hostile bid for all of Warner Discovery, trying to break up Netflix’s deal, though Warner formally rejected that approach. In fact, Paramount is still in the race, despite investor Harris Oakmark telling Reuters on December 23 that the offer was still not good enough.
“Warner Bros’ fifth largest shareholder, owning 96 million shares or about 4% of shares as of the end of September, said it would hold out for more from the Ellison family-controlled Paramount,” stated the media outlet.
“The changes in Paramount’s new offer were necessary, but not sufficient. We see the two deals as a toss-up, and there is a cost to changing paths. If Paramount is serious about winning, they’re going to need to provide a greater incentive,” Harris Oakmark portfolio manager and Director of US Research Alex Fitch said in an email to Reuters.
Paramount has amended its USD 108.4 billion hostile bid for the Hollywood studio to bolster its financing. Oracle co-founder Larry Ellison, whose son David owns Paramount, is now personally guaranteeing USD 40.4 billion of the bid to secure the acquisition, which will give the venture control over HBO Max, as well as the Harry Potter, The Lord of the Rings, and Superman franchises. Paramount has also increased the fee it will pay to USD 5.8 billion from USD 5 billion if regulators don’t approve the deal, to match Netflix’s offer.
Netflix’s new bank loans will leave it with an additional USD 34 billion in financing that the banks would sell as bonds.
“The new financing includes a revolving credit facility that would mature three years after the deal closes, the date it is terminated, or by December 19, 2030, whichever occurs earliest. Netflix can use those proceeds to fund the deal, pay related fees and expenses and refinance debt and for general corporate purposes, according to the filing. The delayed-draw term loan portion consists of a USD 10 billion two-year facility and a USD 10 billion three-year facility. Both replace a portion of commitments under a bridge-financing agreement tied to the deal that Netflix previously disclosed,” reported the Wall Street Journal.