Netflix Faces $83 Billion Gamble: Is It Worth the Risk?
By John Nada·Feb 1, 2026·2 min read
Netflix is poised to make an $83 billion acquisition that has investors questioning its value. A significant gamble could change the streaming landscape.
Netflix is on the verge of a monumental $83 billion decision that could reshape its future. According to Yahoo Finance, the streaming giant has proposed an all-cash deal to acquire certain assets of Warner Bros. Discovery at $27.75 per share, valuing the transaction at approximately $72 billion. To finance this deal, Netflix will utilize $20 billion in cash and incur $52 billion in debt, pushing the enterprise value to $82.7 billion.
This move is significant. With a market cap of $357 billion, Netflix's proposed acquisition marks a departure from its historical strategy of organic growth and avoidance of large mergers. In contrast, competitors like Walt Disney and Amazon have made substantial acquisitions in recent years, raising the stakes for Netflix.
Yet, the market doesn’t seem optimistic. Since the announcement of the deal, Netflix shares have dropped 16%, indicating investor skepticism about the potential return on this hefty investment. Historical data from KPMG reveals that 57% of mergers and acquisitions between 2012 and 2022 led to a loss in shareholder value within two years.
Netflix’s leadership claims the deal will benefit all stakeholders, projecting $2 billion to $3 billion in annual cost savings by the third year post-close. However, with such a staggering price tag, investors must question whether this is a wise financial strategy or an overreach.
In an industry where large deals often backfire, Netflix’s gamble could be a pivotal moment. The outcome may redefine its standing in the competitive streaming landscape.