Netflix shares fell more than 5% on Tuesday after the streaming giant announced it expects its revenue to stabilize in the current quarter, following years of growth.
Netflix reported a profit of $2.4 billion from revenue reaching $12 billion in the last three months of the previous year and forecasts revenue of $12.1 billion this quarter.
Netflix shares dropped about 5% to $82.85 in after-hours trading.
This financial report comes as the platform continues its efforts to acquire Warner Bros. Discovery.
Amending the Terms of the Proposed Deal
Netflix announced on Tuesday an amendment to the terms of the proposed deal to make it entirely cash-based, aiming to reassure Warner Bros. Discovery shareholders about its details.
– Report: Netflix acquires Warner Bros. and HBO Max in the largest deal in history
– Netflix profits rise 45% as the platform bets on sports and live streaming
The amendment is expected to allow a shareholder vote on the deal by April of this year.
“The Warner Bros. Discovery board continues to support this deal and recommends it unanimously, and we are confident it will achieve the best outcomes for shareholders, consumers, creators, and the entertainment industry as a whole,” said a company representative.
“This deal will also significantly expand the scope of production and investment in original programming in the United States, enhancing job creation and long-term growth in the sector,” the representative added.
Netflix
Netflix is an American subscription-based streaming service founded in 1997, originally as a DVD-by-mail rental company. It revolutionized home entertainment by pioneering a streaming model in 2007, leading to its current status as a global producer and distributor of films and television series.
Warner Bros. Discovery
Warner Bros. Discovery is a major global media and entertainment conglomerate formed in 2022 from the merger of WarnerMedia and Discovery, Inc. Its history traces back to the founding of Warner Bros. Pictures in 1923 and the launch of the Discovery Channel in 1985, combining decades of film, television, and streaming content under one corporate entity.
Warner Bros.
Warner Bros. is a major American film and entertainment studio founded in 1923 by brothers Harry, Albert, Sam, and Jack Warner. It grew from a small family business into a Hollywood powerhouse, responsible for iconic films, cartoons like Looney Tunes, and later expanding into television and theme parks.
HBO Max
HBO Max is a subscription video-on-demand streaming service launched in May 2020 by WarnerMedia, offering content from HBO, Warner Bros., and other affiliated brands. It represents the digital evolution and consolidation of WarnerMedia’s vast entertainment library into a single platform for global audiences.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, with its modern government established by the Constitution in 1787. Its history encompasses westward expansion, the Civil War, industrialization, and its emergence as a global superpower in the 20th century.
