Netflix to Borrow Billions for Warner Bros. Deal; Analysts Weigh Debt Risk

• Netflix plans to borrow heavily to fund its $72 billion acquisition of most of Warner Bros. Discovery Inc.
• The deal involves $59 billion in temporary debt financing, to be replaced by bonds, term loans, and a credit facility.
• Netflix's credit profile has significantly improved, moving from "Debtflix" to investment grade, allowing it to take on this large acquisition.
• A hostile takeover bid by Paramount Skydance for Warner Bros. at $108 billion could force Netflix to increase its offer.
• Moody's affirmed Netflix's A3 rating, citing strong operating performance and valuable IP acquisition, despite a shift to a "stable" outlook.

Why It Matters: Netflix's huge debt for Warner Bros. deal could impact its financial stability and market future.