Netflix Weighs Warner Bros Discovery in Potential Mega Media Deal
Netflix is considering the possibility of making an offer for the studio and streaming business owned by Warner Bros. Discovery, according to sources. The company has reportedly engaged a financial advisor and obtained access to financial information. Sources indicate that the video streaming service has engaged Moelis & Co., the investment firm that provided counsel to Skydance Media during its successful bid for Paramount Global, to assess a potential offer. According to sources, Netflix has been granted access to the data room, which contains the financial information necessary to formulate an offer. Moelis and Warner Bros. Discovery remained silent following the event. Netflix could not be reached for comment.
If Netflix were to acquire the studio operations of Warner Bros., it would gain control over a plethora of Hollywood’s most iconic stories and characters, notably the Harry Potter and DC Comics franchises. The prolific television studio owned by Warner Bros. is responsible for producing several successful original programs for Netflix, including “Running Point, You,” and “Maid.” HBO and its partner streaming service could enhance their offerings by incorporating more prestigious dramas, leading to a rise in the number of premium customers. CEO Ted Sarandos informed last week that although Netflix is frequently “more builders than buyers,” the company does assess acquisitions based on several factors, including the scale of the opportunity and whether it would enhance the firm’s entertainment portfolio.
Sarandos announced that Netflix would not pursue the acquisition of the cable television networks owned by Warner Bros. Discovery. The networks in question comprise CNN, TNT, Food Network, and Animal Planet. In the video released to investors for the third quarter of the year, Sarandos stated, “We have been very clear in the past that we have no interest in owning legacy media networks. There is no change there.” Following three unsolicited proposals from Paramount Skydance seeking to acquire the entire company, Warner Bros. Discovery announced last week that it will start assessing its options. The aim of these proposals was to obtain the complete organisation.
The company announced that its board of directors would be considering the potential advancement of its proposed split, which aims to separate the Warner Bros. film and television studios, HBO, and the related HBO Max streaming service from its television business, or to explore the possibility of selling all or parts of the company. On Thursday, Comcast President Mike Cavanagh informed investors that the company is considering the acquisition of media assets that would be “complementary” to its existing business operations. He seemed to be disregarding the worries of those skeptical about Comcast’s capacity to secure regulatory approval, stating, “more things are viable than maybe some of the public commentary that’s out there.”
