Netflix is aggressively exploring a bid for Warner Bros. Discovery’s (WBD) core studio and streaming business, marking a potential seismic shift in the streaming wars. The video streaming service has engaged the investment bank Moelis & Co., which notably advised on the successful bid for Paramount Global, to evaluate a prospective offer, according to sources familiar with the matter.
In a critical step toward a potential deal, Netflix has also been granted access to the data room, which contains the detailed financial information required to formulate a formal bid, Reuters reported. Representatives for WBD and Moelis declined to comment, and Netflix was unavailable for comment.
Acquiring the Warner Bros. studio business would grant Netflix ownership of some of Hollywood’s most successful intellectual properties and characters, including the lucrative Harry Potter and DC Comics franchises.
Furthermore, Warner Bros.’ prolific television studio already produces several successful Netflix originals, such as the series ‘Running Point,’ ‘You,’ and ‘Maid.’ Crucially, the addition of HBO and its companion streaming service, HBO Max, would significantly bolster Netflix’s library with prestige dramas and an influx of high-value subscribers.
Netflix CEO Ted Sarandos recently told investors that while the company is generally “more builders than buyers,” it is open to acquisitions that meet specific criteria, such as the size of the opportunity and the potential to strengthen its core entertainment offerings.
Sarandos has been explicit about the limits of Netflix’s acquisition strategy. He indicated the company has no interest in acquiring Warner Bros. Discovery’s traditional cable television networks, including major channels like CNN, TNT, Food Network, and Animal Planet.
“We’ve been very clear in the past that we have no interest in owning legacy media networks,” Sarandos stated in the company’s third-quarter investor video, confirming, “There is no change there.”
Warner Bros. Discovery initiated a strategic review last week after receiving a trio of unsolicited offers from other parties, including Paramount Skydance, to acquire the entire company. WBD’s board is now weighing options, including a planned split that would separate the film/TV studios and streaming services from the television networks, or pursuing a full or partial sale. Comcast President Mike Cavanagh also told investors that his company is evaluating “complementary” media assets.
Key Highlights:
- Acquisition Exploration: Netflix is actively exploring a bid for Warner Bros. Discovery’s studio and streaming business, hiring Moelis & Co. to advise and gaining access to WBD’s financial data room.
- Valuable Assets: A successful acquisition would give Netflix control over key intellectual property, including the Harry Potter and DC Comics franchises, as well as the prestigious HBO studio and its Max streaming service.
- Selective Interest: Netflix CEO Ted Sarandos has clarified that the company is only interested in the studio and streaming assets and is explicitly not interested in acquiring WBD’s legacy cable television networks (CNN, TNT, etc.).
- WBD Review: This exploration comes as Warner Bros. Discovery evaluates strategic options, including a potential sale or a planned split, after receiving multiple unsolicited offers for the company.