In a move that signals a powerful resurgence for large-scale mergers and acquisitions, streaming titan Netflix Inc. has secured a colossal financing package to support its planned takeover of Warner Bros. Discovery Inc. The company has arranged a US$59 billion unsecured bridge loan, placing it among the largest financings of its kind in corporate history.
The Banking Consortium Behind the Deal
According to statements and filings released on Friday, December 5, 2025, the massive loan is being provided by a consortium of three global banking giants: Wells Fargo & Co., BNP Paribas SA, and HSBC Plc. The structure of this commitment is particularly notable, with Wells Fargo's portion alone amounting to US$29.5 billion. This represents the single largest commitment by one bank for an investment-grade bridge facility in recent memory, underscoring Wall Street's eagerness to participate in lucrative fees tied to major deals after a prolonged quiet period.
The bridge loan is a temporary financing mechanism, typically used to secure a deal quickly before being replaced with more permanent debt instruments. For Netflix, the plan is to eventually refinance this bridge with a combination of long-term securities. This is expected to include up to US$25 billion in corporate bonds sold to institutional investors, alongside US$20 billion in delayed-draw term loans and a US$5 billion revolving credit facility, which are usually held by banks.
A Landmark Deal in Streaming and Finance
The underlying acquisition, announced on Friday, values Warner Bros. Discovery at an enterprise value of approximately US$82.7 billion. Shareholders of the media conglomerate are set to receive US$27.75 per share in a mix of cash and Netflix stock. The total price tag for the acquisition is US$72 billion, with the $59 billion loan covering the bulk of the financing need.
This financing package ranks Netflix's deal among the most significant ever. The record is currently held by Anheuser-Busch InBev SA, which obtained a US$75 billion loan to back its acquisition of SABMiller Plc in 2015, according to data compiled by Bloomberg.
Netflix's Credit Journey and Future Plans
The scale of the new debt will be a test for Netflix's credit rating. The company currently carries strong investment-grade ratings: an A3 from Moody's Ratings and an A from S&P Global Ratings. This marks a significant evolution from its earlier years when it relied on the high-yield "junk" bond market for capital. Netflix achieved its blue-chip status in 2023, which now grants it access to cheaper financing and a broader pool of investors.
Adding nearly $60 billion in debt will undoubtedly increase the company's leverage. On a Friday call with analysts, Netflix's Chief Financial Officer, Spencer Neumann, addressed these concerns directly. "Post-close we're committed to maintaining a healthy balance sheet and our solid investment grade credit ratings," Neumann stated. He outlined a clear plan, expecting leverage to be elevated at the deal's closing but committed to bringing it back under rating agency targets within two years through prioritized deleveraging, while still continuing share repurchases.
This monumental deal is being closely watched as a bellwether for the mergers and acquisitions market. Both banks and institutional investors have been anticipating a wave of large, investment-grade transactions. The Netflix-Warner Bros. Discovery deal, backed by one of the biggest bridge loans ever, may very well be the catalyst that unleashes a new era of mega-deals in the corporate world.
