Netflix has refinanced part of a $59 billion bridge loan for its potential Warner Bros Discovery acquisition. The company secured a $5 billion revolving credit facility and two $10 billion delayed-draw term loans. About $34 billion of the bridge loan remains to be syndicated.
Netflix won the financing through a competitive auction, beating rival bids, including a $108.4 billion unsolicited all-cash offer from Paramount Skydance. Paramount had offered $30 per share for the entire Warner Bros Discovery business.
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Bridge loans provide short-term funding for large deals and are typically replaced with longer-term, lower-cost debt. Netflix’s refinancing is a key step in preparing for the Warner Bros acquisition.
The move signals Netflix’s financial strategy to secure liquidity and support one of the largest media acquisitions in history. Analysts see the refinancing as a way to strengthen Netflix’s position against competing bids.
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With this step, Netflix aims to finalize the Warner Bros Discovery deal efficiently while managing debt costs. The remaining $34 billion will be syndicated to complete the full financing package.