Catenaa, Monday, December 22, 2025- Netflix refinanced part of a $59 billion bridge loan with cheaper and longer-term debt, bolstering the financial package underpinning its bid for Warner Bros.
The streaming giant got a $5 billion revolving credit facility and two $10 billion delayed-draw term loans to refinance part of the bridge facility it took out for its Warner Bros. bid, according to a filing on Monday. That leaves $34 billion for syndication.
Netflix agreed to a deal in early December that values Warner Bros.’ studio and streaming assets at $82.7 billion.
Paramount Skydance subsequently launched a hostile takeover offer for all of Warner Bros., sparking a bidding war that will reshape the entertainment industry regardless of the winner.
The rival bids entail multibillion-dollar debt deals that rank among the largest in the past decade.
Warner Bros. last week advised its shareholders to reject the Paramount bid in favor of its original agreement with Netflix.
Warner Bros. described Paramount’s offer, which includes $54 billion in debt commitments, as “inferior and inadequate,” and said the deal’s financing was too risky.
While Netflix has the support of Warner Bros.’ board, it faces regulatory and political hurdles to get the acquisition over the line.
Democratic Senator Elizabeth Warren of Massachusetts has branded the bid as an “anti-monopoly nightmare,” and Netflix has moved to reassure staff that it won’t result in studio closures.
Bridge loans plug immediate financing gaps and are commonly used by companies preparing buyout bids. They’re typically replaced weeks or months later by more permanent and cheaper debt, often spread among more lenders.
While short-lived, the loans allow banks to build relationships with companies to win higher-paying mandates down the road. With credit markets quite recently, competition among banks has been fierce for the few opportunities that have materialized.
Warner Bros stock rose by over 3% on Monday, while Netflix stock fell by 1%.
