Netflix is weighing a bid for Warner Bros. Discovery’s studio and streaming business, joining Paramount Skydance and other potential suitors in what seems to be a significant takeover battle in recent years, according to Reuters. As per media reports, the move comes as consolidation pressures mount across the global media industry, where streaming economics and slowing subscriber growth are pushing studios toward scale and synergy.
According to people familiar with the matter, Netflix has hired Moelis & Co., the investment bank that advised Skydance Media on its successful Paramount Global deal, to evaluate a prospective offer. The streaming platform has also secured access to Warner Bros. Discovery’s financial data room, reports said.
Entertainment assets
A deal would give Netflix control over some of the world’s most lucrative entertainment assets, including the Harry Potter and DC Comics franchises. Warner Bros.’ television arm also produces several Netflix originals, such as You, Maid and Running Point. Adding HBO and its streaming service Max would further deepen Netflix’s content library and appeal to high-value subscribers.
Still, CEO Ted Sarandos told investors last week that the company remains selective about acquisitions. “We’ve been very clear in the past that we have no interest in owning legacy media networks,” he said, referring to channels such as CNN, TNT and Food Network. “We are more builders than buyers.”
What Warner Bros. Discovery says
Warner Bros. Discovery, led by CEO David Zaslav, reviewed strategic options last week after receiving three unsolicited offers from Paramount Skydance to acquire the entire company. The latest offer valued Warner Bros. at $23.50 per share, Bloomberg reported.
In a town hall with employees on Wednesday, Zaslav confirmed that the board had rejected Paramount Skydance’s proposals, saying a higher bid would be needed to justify a sale. He added that other global players, including Apple and Amazon, had also expressed interest in the company’s entertainment assets.
Absent a compelling offer, Warner Bros. Discovery may proceed with a planned split that would separate its fast-growing studio and streaming division from its legacy cable TV networks. The company employs around 35,000 people worldwide.
Meanwhile, Comcast President Mike Cavanagh said the US cable major is also reviewing complementary media assets, dismissing concerns about regulatory hurdles. “More things are viable than maybe some of the public commentary that’s out there,” he told investors.