Critics and Market Jitters
Both merger proposals have drawn criticism from industry observers who warn they would concentrate too much power in a single media company.
Investor unease has also surfaced. Since the deal was announced last month, Netflix shares have fallen more than 10%. They slid again in after-hours trading Tuesday, even as the company reported strong results for the final three months of 2025.
Netflix’s Financial Muscle on Display
Netflix said quarterly revenue jumped 18% from a year earlier to more than $12 billion (£9 billion), including over $1.5 billion (£1.1 billion) from advertising. Profits climbed nearly 30% to $2.4 billion (£1.8 billion).
The company now counts more than 325 million paying subscribers worldwide, an increase of over 7% from a year ago.
A Bet on Complementary Power
In a letter to shareholders, Netflix defended the acquisition, describing the two companies as “highly complementary.” Executives said the deal would deepen Netflix’s film and television slate and enable more personalized streaming experiences.
The company also highlighted plans to increase investment in U.S. production.
“Together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry,” Netflix said.
As the Netflix and Warner Bros all cash deal moves forward, the outcome could redraw the map of global entertainment — and decide who holds the keys to Hollywood’s vault.
