1639 GMT - Netflix's deal with Warner Bros raises some concerns, XTB's Kathleen Brooks writes in a note. The U.S. streaming company has agreed to buy Warner Bros. for $72 billion in a cash-and-stock deal. "Investors' lack of enthusiasm is down to multiple factors, including a track history of mega buyouts going sour and not delivering their promised returns," she says. Deals of this scale are complex, and flawless execution is crucial to realize their benefits, she adds. Investor sentiment is also weighed down by concerns that Netflix might need to sharply raise subscription prices to justify the deal, potentially slowing future revenue growth, she says. Some worry that gaining access to HBO and Warner Bros.'s catalog could reduce Netflix's incentive to invest in new, original content. Netflix shares are down 0.6% at $102.51. (najat.kantouar@wsj.com)
(END) Dow Jones Newswires
December 05, 2025 11:39 ET (16:39 GMT)
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