Netflix pushes for WBD deal with all-cash offer, reveals US$1.5B in ad revenue
Netflix moves to seal its Warner Bros deal and reveals a booming ad business
Netflix is making bold moves to lock in its acquisition of Warner Bros Discovery (WBD), revising its original cash-and-stock offer to an all-cash deal worth US$72 billion. At the same time, the streamer is flexing its growing muscle in advertising, announcing that ad revenue reached US$1.5 billion in 2025.
This article explores Netflix’s updated acquisition strategy, what its surging ad business signals for marketers, and why brands should keep a close eye on the streaming giant’s evolving ecosystem.
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Patrecia Meliana
What changed in the WBD deal?
Netflix surprised investors by scrapping its original cash-and-stock deal for WBD’s studio and streaming assets in favor of a full-cash acquisition. The new bid values WBD shares at US$27.75, backed by a US$67.2 billion bridge loan commitment, including an additional US$8.2 billion secured in January.
Netflix cited a faster approval timeline and greater deal certainty as key reasons for the move. “The revised transaction structure expedites the timeline to a WBD shareholder vote and provides greater certainty of value that will be delivered at closing,” Netflix said in a letter to shareholders.
This strategic pivot also comes amid fierce competition. Paramount Skydance is reportedly pursuing WBD with its own bid, pushing Netflix to offer stronger financial assurances and avoid drawn-out regulatory delays.
If finalized, the acquisition would bring marquee IP like Game of Thrones, Harry Potter, and the DC superhero universe into Netflix’s fold. That means even more firepower to compete in the high-stakes streaming wars.
Netflix's ad business is catching fire
Beyond the merger, Netflix’s Q4 2025 earnings revealed a company gaining traction on multiple fronts. Total revenue hit US$45.2 billion for the year, up 16% year over year, while subscriber count crossed 325 million.
But what really stood out was ad revenue: US$1.5 billion in 2025, more than 2.5 times higher than the previous year. Netflix expects that number to double again in 2026 to US$3 billion.
The company has doubled its upfront commitments, recorded its strongest ad sales quarter in Q3, and is introducing AI-driven ad formats that bring advertisers closer to content. These ad innovations aim to reduce waste while improving the viewer experience.
The boost comes as Netflix continues to scale its ad-supported tier. This pricing strategy not only attracts budget-conscious users but also opens up premium ad inventory for marketers.
What marketers should know
Netflix’s aggressive moves in both content and advertising have clear implications for B2B marketers and brand strategists.
1. Netflix is becoming a full-stack media platform
With the addition of HBO Max and WBD’s content library, Netflix is no longer just a streaming app. It is positioning itself as a vertically integrated studio, distributor, and ad-tech platform. Brands should watch for new opportunities in product placement, branded content, and multi-platform advertising.
2. AVOD is gaining serious momentum
The leap in ad revenue proves Netflix’s AVOD model is working. For marketers, this opens up fresh targeting options within premium video environments. Think beyond traditional broadcast placements and start exploring Netflix’s ad-tier capabilities.
3. AI-driven ads demand new creative strategies
With Netflix deploying AI ad formats, marketers will need to revisit their creative approach. Dynamic ad insertion and contextual targeting may require more flexible creative assets that align with genre, mood, or audience segments.
4. Media buyers must prepare for consolidation
A completed WBD deal could tighten the ad supply chain. Brands may gain access to broader reach, but they may also face higher costs or fewer negotiating levers. Smart marketers will diversify spend across platforms while testing Netflix's offerings early.
Netflix is making it clear it wants to dominate the future of entertainment, both in content and monetization. With a massive all-cash WBD bid and skyrocketing ad revenue, the company is rewriting the playbook for media consolidation.
For marketers, this is a moment to watch closely. The streaming giant is quickly becoming one of the most important advertising channels globally. Those who act early and adapt fast will be better positioned to ride the next wave.
