Netflix Is Looking to Become Debtflix Again to Fund Acquisition

Netflix, a company that built its business on junk bonds, is looking to borrow heavily again.

The streaming company once known as “Debtflix” before it started generating heavy cash flow is looking to add tens of billions of dollars of debt to finance its planned $72 billion acquisition of most of Warner Bros. Discovery Inc. But Netflix Inc. has a stronger balance sheet than it did before the pandemic, which will probably allow the company to boost the price it pays in any bidding war that emerges, while remaining investment grade.

“Netflix’s credit profile really turned around,” said Stephen Flynn ...