BY EMMANUEL OGBONNA
Netflix reported slightly stronger-than-expected revenue for the crucial holiday quarter, buoyed by a surge in subscribers and a slate of high-profile releases that drove viewing to new highs, even as investors remained focused on the company’s ambitious push to reshape the global entertainment landscape through a major acquisition.
The streaming giant said on Tuesday that revenue for the October-to-December period reached $12.1 billion, edging past Wall Street expectations of $11.97 billion. The company also revealed that its global subscriber base has now surpassed 325 million, underscoring its continued dominance in the increasingly competitive streaming market. Despite the solid results, Netflix shares slipped 2.4 percent in after-hours trading.
Viewer engagement rose sharply during the quarter. According to Nielsen, Netflix’s monthly viewership climbed 10 percent in December, driven largely by the final season of the science-fiction hit “Stranger Things,” which alone generated roughly 15 billion viewing minutes. The company also drew significant attention by streaming two National Football League games on Christmas Day and releasing a new installment in the popular “Knives Out” murder mystery film series.
Netflix had already crossed the 300 million subscriber mark by the end of 2024, a milestone that few in the industry believed possible just a few years ago. The latest figures highlight the platform’s ability to keep audiences engaged with a mix of original series, live sports experiments and well-known film franchises.
Beyond its quarterly performance, investor attention has increasingly centered on Netflix’s pursuit of Warner Bros. Discovery’s studio and entertainment assets, a deal that would dramatically expand its content library and competitive reach. The company is seeking to fend off a rival bid from Paramount Skydance and has moved aggressively to strengthen its position.
Netflix recently amended its merger proposal into an all-cash offer for the Warner film and television studios, along with their extensive catalog and marquee franchises. These include globally recognized properties such as “Game of Thrones,” “Harry Potter,” and DC Comics characters like Batman and Superman. Company executives argue that the revised structure will accelerate the approval process and reduce uncertainty for shareholders.
“Our revised all-cash agreement will allow for a faster path to a shareholder vote and offer greater financial certainty,” co-chief executive Ted Sarandos said in a statement accompanying the updated bid.
In communications with investors, Netflix said the acquisition would significantly enhance the breadth and quality of its programming, while also enabling more personalized and flexible subscription options through the integration of HBO Max’s offerings. The company sees the deal as a strategic move to deepen customer loyalty and defend its market leadership as rivals continue to consolidate.
To finance the transaction, Netflix secured commitments for a $59 billion bridge loan in early December and increased that commitment by an additional $8.2 billion this week to support its all-cash offer of $27.75 per share.
On the earnings front, Netflix reported adjusted earnings of 56 cents per share for the fourth quarter, narrowly topping analyst expectations of 55 cents. Looking ahead, the company forecast continued growth in 2026, projecting revenue between $50.7 billion and $51.7 billion. Advertising revenue, a growing pillar of Netflix’s business, is expected to roughly double over that period, the company said.
While short-term market reaction was muted, the results reinforced Netflix’s position as the industry’s pace-setter, with its future trajectory increasingly tied not just to subscriber growth, but to how successfully it can leverage scale, advertising and blockbuster content in a rapidly evolving media landscape.
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