Netflix (NFLX) was long regarded as the premier subscription-based streaming service in the world, with a well-established history of growth through creative use of pricing power, developing hit programming, and relying very little on outside sources for licensing.
The company's growth narrative was altered when it announced an agreement to purchase Warner Bros. Discovery’s (WBD) studios and HBO for approximately $82.7 billion in enterprise value and approximately $72 billion in equity value by acquiring Warner Bros. studios and their respective streaming operations and placing a cash and stock offer of $27.75 per share.
While some have questioned whether this acquisition might be indicative of a need to fix a broken model, Netflix believes that they only have a need to continue demonstrating capital discipline; however, this acquisition has provided new perspectives on valuation and has caused additional questions regarding risk factors associated with the company going forward.
Strong Fundamentals Meet a New Level of Risk
Operationally, Netflix continues to perform at a high level. In the fourth quarter, revenue came in at $12.05 billion, slightly ahead of Wall Street estimates and up nearly 18% year over year. The growth rate picked up modestly compared to the 17% pace of Q3. Earnings per share also came in ahead of expectations.
Operating income surged 30% from the year-ago period, with operating margin expanding by 2.3 percentage points to 24.5%, both well above analyst forecasts. Free cash flow reached $1.87 billion, up more than 30% year over year, while operating cash flow grew by 37% to $2.11 billion—again beating expectations by a wide margin.
However, Netflix’s guidance for the first quarter of 2026 was more cautious. The company expects revenue of $12.16 billion, narrowly missing consensus estimates of $12.17 billion. EPS is projected to grow 15.2% year over year, down from more than 17% in Q4, and notably below Wall Street’s expected 24.2% increase. At $0.76, Q1 EPS guidance sits 7.3% below analyst consensus.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
該公司週二表示，從2027年1月1日到派拉蒙交易完成，每股25美分的“滴答費”將相當於每個季度約6.5億美元的現金。
如果交易失敗，派拉蒙還將爲華納兄弟欠Netflix的28億美元終止費提供資金。
華納兄弟探索公司和網飛沒有立即迴應置評請求。
Netflix和派拉蒙都覬覦華納兄弟領先的電影和電視工作室、廣泛的內容庫以及《《權力的遊戲》》、《哈利·波特》和DC漫畫的超級英雄蝙蝠俠和超人等主要特許經營權。
派拉蒙發起了一場積極的媒體宣傳活動，試圖讓股東相信其出價更高，但華納兄弟拒絕了大衛·埃裏森領導的公司。
華納兄弟將召開特別投資者會議，就Netflix交易進行投票，這家流媒體先驅表示，會議預計將於4月舉行。