Netflix has taken a significant step toward securing long-term financing for its proposed acquisition of Warner Bros Discovery’s film, television, and streaming businesses, refinancing a portion of the $59 billion bridge loan it arranged late last year. The move, disclosed in a regulatory filing on Monday, comes as the streaming company prepares for what would rank among the largest media transactions ever completed.

Under the new financing structure, Netflix has secured a $5 billion revolving credit facility alongside two delayed-draw term loans totaling $20 billion. The refinancing reduces the immediate reliance on the original bridge facility, leaving roughly $34 billion still to be syndicated to the broader debt market. The proceeds are expected to cover the cash component of the transaction, associated fees and expenses, and potentially broader corporate needs, including refinancing existing obligations.

The acquisition bid places Netflix at the center of an intense battle for Warner Bros Discovery’s most valuable assets, including its film and television studios as well as HBO and HBO Max. Netflix ultimately prevailed in a competitive auction process, fending off multiple rival bids. Among them was an unsolicited all-cash offer from Paramount Skydance, which valued Warner Bros Discovery at $108.4 billion, or $30 per share.

Despite acknowledging that Paramount’s proposal offered higher immediate value, Warner Bros Discovery’s board reaffirmed its backing of the Netflix deal. The board cited stronger strategic alignment and greater certainty of financing as key reasons for its decision, underscoring concerns about execution risk in alternative proposals.

The transaction is expected to close after Warner Bros Discovery completes the planned spin-off of its Global Networks unit, targeted for the third quarter of 2026. The separation, announced in mid-2025, is designed to carve out the company’s high-growth streaming and studio operations from its legacy cable networks, allowing each business to pursue more focused strategies while unlocking shareholder value.

Netflix originally arranged the $59 billion bridge loan on December 4 to ensure funding certainty during the bidding process. Such bridge loans are commonly used in large-scale acquisitions to provide immediate capital and are typically refinanced or replaced over time with longer-term, lower-cost debt. Netflix’s latest refinancing marks an early step in that transition as it advances toward completing the landmark deal.