Helped by 'Stranger Things' finale, Netflix lands strong fourth quarter

Core Insights - Netflix reported strong financial results for the fourth quarter, with revenue increasing by 18% to over $12 billion compared to the previous year, driven by growth in advertising, higher prices, and an increase in paid memberships [1][2] - The company's profits for the same period reached $2.4 billion, or 56 cents per share, up from $1.87 billion, or 43 cents per share, a year earlier [2] - Total engagement on the platform rose by 2% in the second half of the year, with significant contributions from popular shows and movies, including the final season of "Stranger Things" and the record-breaking "KPop Demon Hunters" [3][4] Financial Performance - For the fiscal year, Netflix reported total revenue of $45.2 billion, marking a 16% increase from 2024 [5] - The earnings report coincided with Netflix's modification of its acquisition offer for Warner Bros. Discovery, now an all-cash bid valued at $82.7 billion [5][6] Market Reactions - Despite the strong earnings, Netflix shares have been declining since the announcement of the Warner Bros. acquisition, raising questions among investors about the strategic fit of the deal [6] - Rival bidder Paramount continues its hostile takeover attempt for Warner Bros., with a deadline for investors to tender their shares set for January 21 [7]