Netflix beats revenue estimates as subscribers reach 325 million

LOS ANGELES, Jan 20 (Reuters) - Netflix exceeded Wall Street's revenue estimates for its holiday quarter, as it crossed 325 million subscribers, the company said ​on Tuesday.

Revenue came in at $12.1 billion for October through December - topping forecasts of $11.97 ‌billion for the quarter, according to analysts surveyed by LSEG.

Nielsen reported that Netflix's monthly viewership rose ‌10% in December, thanks largely to the final season of hit sci-fi series "Stranger Things," which generated 15 billion viewing minutes. Netflix also streamed two National Football League games on Christmas Day and released a third film in the "Knives Out" murder mystery series.

Investors remain ⁠focused on Netflix's $82.7 billion pursuit ‌of Warner Bros Discovery's studio and other entertainment assets, as it seeks to fend off a hostile bid from Paramount Skydance.

Netflix amended ‍its merger agreement to an all-cash offer for the film and television studios, its extensive content library and major entertainment franchises, including "Game of Thrones," "Harry Potter" and DC Comics' superheroes like Batman ​and Superman.

"Our revised all-cash agreement will enable an expedited timeline to a stockholder ‌vote and provide greater financial certainty," Netflix Co-CEO Ted Sarandos said in a statement accompanying Tuesday's amended bid.

In its note to investors, Netflix said the Warner Bros acquisition will provide it with an even broader and higher-quality selection of movies and shows for its subscribers, while it will be able to offer more personalized, flexible ⁠subscription offers with the addition of HBO Max.

The ​company said it obtained commitments for a $59 billion ​bridge loan on December 4 to support the Warner acquisition. On Monday, it increased the bridge loan commitment by $8.2 billion to support its ‍all-cash $27.75 per share offer.

In ⁠financial results, Netflix reported adjusted per-share earnings of 56 cents for the fourth quarter ended in December, slightly above estimates of 55 cents per share.

Netflix forecasts ⁠continued growth in 2026, with revenue of $50.7 billion to $51.7 billion. Ad revenue is expected to roughly ‌double, Netflix said.

(Reporting by Dawn Chmielewski and Lisa Richwine in Los Angeles; ‌Editing by Sayantani Ghosh and Matthew Lewis)