Why is Netflix bidding for Warner Bros. studio?

Netflix is pursuing the Warner Bros. acquisition to bolster its streaming service amidst slowing subscriber growth and potential market saturation.

How has Netflix's subscriber growth changed recently?

Netflix experienced a significant slowdown in subscriber growth in 2025, adding 23 million users compared to 41 million in 2024.

What is the financial impact of Netflix's Warner Bros. bid?

The $72 billion bid is a major financial undertaking for Netflix, impacting its stock buyback programs and facing regulatory review.

Home / Business and Economy / Netflix Subscriber Slowdown Sparks Acquisition Focus

Netflix Subscriber Slowdown Sparks Acquisition Focus

21 Jan

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Summary

Netflix subscriber growth significantly slowed in 2025.
Netflix is pursuing a $72 billion bid for Warner Bros. studio.
Company shares dropped despite better-than-expected quarterly results.

Netflix Subscriber Slowdown Sparks Acquisition Focus

Netflix concluded 2025 with solid financial results, though subscriber growth notably decelerated, highlighting the strategic importance of its proposed $72 billion acquisition of Warner Bros. studio. The company reported over 325 million global subscribers by year-end, marking an increase of approximately 23 million subscribers for 2025. This figure represents a substantial slowdown from the 41 million added in 2024, raising concerns among investors about potential market saturation.

Further compounding these concerns, management projected January-March profits below analyst expectations and announced a halt in stock buybacks to facilitate the Warner Bros. deal. While ad sales are expected to double, revenue growth is anticipated to moderate. Netflix's shares experienced a nearly 5% decline in extended trading following the announcements, even as the company posted $2.4 billion in profit and over $12 billion in revenue for the most recent quarter.