Netflix is actively exploring a potential bid for key assets of Warner Bros. Discovery (WBD), specifically targeting the company’s studio and streaming business. This comes as WBD begins evaluating various options after receiving multiple unsolicited offers to acquire the entire company.
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According to sources familiar with the matter, the video streaming giant has retained investment bank Moelis & Co to evaluate a prospective offer. Moelis & Co notably advised Skydance Media on its successful bid for Paramount Global, giving the firm valuable experience in large-scale media acquisitions. Furthermore, Netflix has been granted access to WBD’s data room, which contains the necessary financial details required to formulate a formal bid.
Netflix, WBD, and Moelis & Co. have declined to comment on the matter.
Acquiring Warner Bros.’ studio business would grant Netflix control over some of Hollywood’s most lucrative stories and characters, including the Harry Potter and DC Comics franchises. Furthermore, Warner Bros.’ prolific television studio already produces several of Netflix’s current hits, such as original series Running Point, You, and Maid. Ownership of HBO and its companion streaming service, HBO Max, would add prestige dramas and a substantial base of high-value subscribers.
Netflix CEO Ted Sarandos recently reiterated the company’s long-standing strategy, telling investors that while Netflix is traditionally “more builders than buyers,” it does actively evaluate acquisitions based on criteria like strengthening its entertainment offerings and the size of the opportunity.
Sarandos was, however, clear about what Netflix is not interested in, specifically dismissing any intention to acquire WBD’s legacy cable television networks, which include 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 said. “There is no change there.”
WBD’s decision to begin evaluating options follows a trio of unsolicited takeover offers. The company’s board will now consider whether to proceed with a planned organizational split—separating the film/TV studios and HBO Max from its traditional television business—or to pursue an outright sale of all or parts of the company.
The entrance of Netflix adds a major new dynamic to the media M&A frenzy. In another recent development, Comcast president Mike Cavanagh also told investors that his company is evaluating media assets that would be “complementary” to its existing business, appearing to dismiss regulatory concerns by noting that “more things are viable than maybe some of the public commentary that’s out there.” This signals that the industry is bracing for a wave of consolidation and asset restructuring, with Netflix positioning itself to capture highly valuable content IP.
