Netflix is actively exploring a bid for Warner Bros. Discovery’s movie studio and streaming business. The streaming giant has even hired a financial advisor and gained access to important financial information, according to three sources familiar with the discussions.
Netflix brought in Moelis & Co., an investment bank that helped Skydance Media successfully acquire Paramount Global, to help evaluate a potential offer. Netflix has also been granted access to the “data room,” which contains all the financial details needed to make a bid, two sources confirmed.
Warner Bros. Discovery and Moelis declined to comment on these developments. Netflix could not be reached for a statement. If Netflix were to acquire Warner Bros. ‘ studio, it would gain control over some of Hollywood’s most popular stories and characters. This includes major franchises like Harry Potter and DC Comics. Warner Bros.’ busy television studio also produces many of Netflix’s hit shows, including “Running Point,” “You,” and “Maid.” Adding HBO and its companion streaming service would bring more acclaimed dramas and a significant boost in subscribers.
Netflix CEO Ted Sarandos told investors last week that his company usually prefers to “build rather than buy.” However, he noted that they do consider acquisitions based on factors like the opportunity’s size and whether it would improve their entertainment offerings.
Sarandos made it clear that Netflix has no interest in acquiring Warner Bros. Discovery’s traditional cable TV networks, including 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, confirming his position has “no change there.” Last week, Warner Bros Discovery announced it would begin evaluating its options. This decision came after the company received three unexpected offers from Paramount Skydance to buy the entire company.
The board will now consider whether to proceed with its planned split, which would separate the Warner Bros film and television studios, HBO, and HBO Max from its television business, or pursue a sale of all or parts of the company.
Comcast President Mike Cavanagh told investors on Thursday that his company is also looking at media assets that would “complement” its existing business. He dismissed those who doubt Comcast could win regulatory approval, suggesting “more things are viable than maybe some of the public commentary that’s out there.
