Netflix Shares Slide as Spending Mounts Amid Warner Deal

Netflix Inc. shares tumbled Wednesday after the company issued a disappointing forecast for earnings in the months ahead as it spends more on programming and works to close its $82.7 billion deal with Warner Bros. Discovery Inc.

The streaming leader said Tuesday it plans to increase spending on films and TV shows by 10% this year while forging ahead with plans to buy the studio and streaming business of Warner Bros., a deal that would unite two of the world’s largest entertainment companies. Netflix spent about $18 billion on programming last year, with subscribers growing almost 8% to top 325 million.