Netflix has reached a major new milestone, announcing earlier this week that its global paid membership has climbed to 325 million.
The figures, released a year after the streaming giant last disclosed its subscriber totals, came as the company reported fourth-quarter financial results that narrowly beat expectations on Wall Street, CNBC reported.
“Despite the record numbers, the company’s share price fell by more than 4% in after-hours trading. Investors appear cautious as the firm moves away from its traditional “go-it-alone” strategy to pursue a massive, $72bn (£57bn) acquisition of Warner Bros. Discovery assets,” the reports stated.
Financial growth and ad revenue
For the period ending 31 December, Netflix reported a revenue of $12.05bn, slightly ahead of the $11.97bn predicted by analysts. Earnings per share stood at 56 cents, compared to the estimated 55 cents.
The company’s net income for the quarter rose to $2.42bn, up from $1.87bn during the same period the previous year.
A significant driver of this growth has been the company’s ad-supported tier, which launched in late 2022.
Netflix revealed that advertising revenue in 2025 jumped by more than 2.5 times compared to 2024, exceeding $1.5bn.
Looking ahead, the firm expects overall revenue for 2026 to reach between $50.7bn and $51.7bn, bolstered by a projected doubling of ad revenue.
The Warner Bros. gamble
The results are reported to be overshadowed by the ongoing drama surrounding Netflix’s bid for Warner Bros. Discovery’s film studio and HBO Max.
In a surprising change of tactics, Netflix amended its offer on Tuesday to an all-cash deal valued at $27.75 per share, or an equity value of $72bn.
To fund the acquisition, the company has confirmed it will pause its share buyback programme.
Co-CEO Ted Sarandos defended the move to investors, describing it as a “strategic accelerant” that would bring in expertise and intellectual property Netflix currently lacks.
“We’re expanding content creation, not collapsing it in this transaction,” Mr Sarandos said, dismissing fears of job cuts. He added that he remains confident of gaining regulatory approval, calling the deal “pro-consumer” and “pro-worker.”
Nevertheless, the proposed deal marks a radical departure from Netflix’s long-standing avoidance of industry mergers, and the market has reacted with skepticism. Since rumours of the acquisition first surfaced in October, Netflix’s stock is reported to have plummeted by nearly 30%.
In addition, the path to completion is also complicated by a hostile rival bid from Paramount Skydance for the same assets, as well as scrutiny from lawmakers concerned about media consolidation.
While co-CEO Greg Peters acknowledged that internal financial targets reported by the Wall Street Journal in April were “long-term aspirations” rather than firm forecasts, the company remains under pressure to prove that its new, more aggressive acquisition strategy will pay off in an increasingly crowded market.
