Netflix Explores Bid for Warner Bros Discovery Studio Business

Key Takeaways

• Netflix is exploring a bid for Warner Bros Discovery’s studio and streaming assets
• The streaming giant has hired Moelis & Co as financial advisor and gained data room access
• Netflix CEO confirmed no interest in legacy cable networks like CNN, TNT

Netflix is actively pursuing a potential acquisition of Warner Bros Discovery’s studio and streaming business, according to sources familiar with the matter. The streaming service has retained investment bank Moelis & Co and secured access to confidential financial data needed for due diligence.

Strategic Move in Media Consolidation

Netflix has hired Moelis & Co, the same bank that advised Skydance Media on its successful Paramount Global bid, to evaluate a prospective offer. The company has been granted access to the data room containing essential financial details for making an informed bid.

Warner Bros Discovery and Moelis declined to comment, while Netflix could not be reached for comment.

What Netflix Stands to Gain

Acquiring Warner Bros’ studio business would give Netflix control over some of Hollywood’s most valuable intellectual property, including the Harry Potter and DC Comics franchises. The Warner Bros television studio already produces several Netflix hits like “Running Point,” “You” and “Maid.”

The addition of HBO and its streaming service would bring more premium dramas and subscribers to Netflix’s platform.

Netflix’s Acquisition Strategy

Netflix CEO Ted Sarandos recently told investors that while the company traditionally prefers building over buying, it evaluates acquisitions based on opportunity size and potential to strengthen entertainment offerings.

However, Sarandos explicitly ruled out interest in Warner Bros Discovery’s cable networks, stating: “We’ve been very clear in the past that we have no interest in owning legacy media networks. There is no change there.” This excludes networks like CNN, TNT, Food Network and Animal Planet from any potential deal.

Broader Industry Context

Warner Bros Discovery announced last week it would evaluate strategic options after receiving multiple unsolicited offers. The company’s board is considering whether to proceed with a planned split separating Warner Bros studios and HBO from its television business, or pursue a sale of all or parts of the company.

Separately, Comcast President Mike Cavanagh indicated his company is evaluating complementary media assets, suggesting regulatory approval might be more feasible than public commentary suggests.