Netflix Faces Investor Concerns Over $82.7 Billion Acquisition
Netflix Inc. (NASDAQ: NFLX) is currently facing a significant decline, with its stock down approximately 43% from a peak in July 2025, raising questions about whether now is a good time to invest. The drop is largely attributed to investor apprehension regarding its upcoming $82.7 billion acquisition of multiple media assets from Warner Bros. Discovery (NASDAQ: WBD). This transaction is planned as an all-cash deal, which will necessitate Netflix increasing its debt, as the company has about $9 billion in cash and short-term investments available.
Investors are concerned about how these assets will be integrated into Netflix’s service portfolio and the long-term implications of increased debt on the company’s financial health. Prior to the decline, Netflix’s stock was trading at over 60 times trailing earnings and nearly 50 times forward earnings, raising doubts about its valuation as revenue growth hovered in the mid-teens percentage range.
Market analysts suggest that if Netflix can effectively integrate the acquired assets, the stock may present a valuable buying opportunity. However, uncertainty remains about the company’s ability to manage the financial burden of the acquisition successfully.
