Netflix's stock took a hit on Tuesday despite co-CEOs Ted Sarandos and Greg Peters' efforts to reassure investors about the company's proposed acquisition of Warner Bros. Discovery. The stock price, already down 15% since the deal was announced in early December, fell another 4.9% in after-hours trading following the earnings call.

The proposed deal values Warner Bros. Discovery at $83 billion. Sarandos and Peters argued that the acquisition would significantly accelerate Netflix's core streaming business and facilitate expansion into television and theatrical film production. They highlighted Netflix's history of successful transformations, referencing its origins as a DVD-by-mail service.

However, the market remained unconvinced. The negative reaction suggests investors are skeptical about the financial implications and strategic rationale behind the acquisition. Concerns may revolve around the potential debt burden, integration challenges, and the overall impact on Netflix's profitability.

Netflix, a dominant player in the streaming video market, faces increasing competition from established media companies and tech giants. The company has been actively seeking ways to diversify its content offerings and revenue streams. The acquisition of Warner Bros. Discovery would provide Netflix with a vast library of content and established production capabilities.

The future performance of Netflix's stock will likely depend on the company's ability to demonstrate the financial benefits and strategic advantages of the Warner Bros. Discovery acquisition. Investors will be closely monitoring key metrics such as subscriber growth, revenue, and profitability in the coming quarters.