Netflix Stock Drops 15% Amid Warner Bros. Acquisition Concerns

Investors worry about the impact of the $82.7 billion deal on Netflix's balance sheet and growth trajectory.

Published on Feb. 11, 2026

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Netflix's stock has dropped by around 12% since the start of 2026, with investors concerned about the company's planned $82.7 billion acquisition of Warner Bros. While Netflix's revenue and earnings continue to grow, some fear the deal could burden its balance sheet and fail to create real value for shareholders. However, the combination of Netflix and Warner Bros. has the potential to succeed where other acquisitions have failed, given the synergies between their business models.

Why it matters

The Netflix-Warner Bros. acquisition is a high-stakes move that could significantly impact the streaming giant's future. If successful, it could bolster Netflix's content library and expand its market share. However, if the deal falters, it could weigh heavily on Netflix's financials and stock price, making it a crucial decision for the company and its investors.

The details

Netflix has reportedly secured a $59 billion loan to help finance the Warner Bros. acquisition, which is expected to be completed in the third quarter of 2026 pending regulatory approvals. While mergers and acquisitions often fail to improve a company's sales growth, cost savings, or stock price, the Netflix-Warner Bros. combination has the potential to succeed due to the synergies between their business models. The acquisition could allow Netflix to leverage Warner Bros.' intellectual property, including popular franchises like Harry Potter and the DC Comic Universe, to drive user retention and create new content with built-in audiences.

  • The Warner Bros. acquisition is expected to be completed in the third quarter of 2026.
  • Netflix's stock has dropped by around 12% since the start of 2026.

The players

Netflix

An American entertainment company and one of the world's leading streaming platforms, known for its original content and vast library of TV shows and movies.

Warner Bros.

An American entertainment company and a subsidiary of AT&T, known for its extensive library of intellectual property including popular franchises like Harry Potter and the DC Comic Universe.

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What’s next

The Department of Justice is probing Netflix for potential anticompetitive practices, which could impact the completion of the Warner Bros. acquisition.

The takeaway

The success of the Netflix-Warner Bros. acquisition will be crucial in determining the future of the streaming giant. While the deal has the potential to bolster Netflix's content library and market share, the high price tag and potential regulatory hurdles make it a risky move that investors will be closely watching.