Netflix explores bid to acquire Warner Bros Discovery, hires Moelis to evaluate potential deal

Netflix is exploring a potential acquisition of Warner Bros Discovery’s studio and streaming operations, marking one of its most ambitious moves yet in the entertainment industry, according to three sources familiar with the matter.

The streaming giant has hired investment bank Moelis & Co, which recently advised Skydance Media in its successful bid for Paramount Global, to assess a possible offer, two of the sources said. Netflix has also been granted access to Warner Bros Discovery’s financial data room, providing the company with detailed financial information necessary to evaluate a bid, according to two of the sources.

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

If successful, the acquisition would give Netflix control over some of Hollywood’s most valuable franchises, including Harry Potter and DC Comics. Warner Bros’ television arm also produces several popular Netflix titles such as Running Point, You, and Maid. Adding HBO and its companion streaming service could strengthen Netflix’s lineup of prestige dramas and expand its subscriber base.

Netflix CEO Ted Sarandos, speaking to investors last week, noted that the company is “more builders than buyers,” but acknowledged that it evaluates acquisitions based on opportunity size and strategic value. “We’ve been very clear in the past that we have no interest in owning legacy media networks,” he said during Netflix’s third-quarter investor video. “There is no change there.”

Sarandos’s remarks suggest that while Netflix may pursue Warner Bros’ studio and streaming businesses, it would likely exclude the company’s cable television networks — which include CNN, TNT, Food Network, and Animal Planet — from any potential deal.

Warner Bros Discovery recently announced that its board is reviewing options after receiving unsolicited takeover proposals, including one from Paramount-Skydance. The company is also weighing whether to proceed with its previously announced plan to split its studio, HBO, and streaming divisions from its television networks.

Meanwhile, Comcast President Mike Cavanagh told investors that the company is also evaluating media assets that could complement its portfolio. He dismissed concerns over regulatory hurdles, saying, “More things are viable than maybe some of the public commentary that’s out there.”

If Netflix proceeds with a bid, the move would mark a significant shift in Hollywood’s competitive landscape, positioning the streamer as both a dominant content producer and a global distributor.

(WIth inputs from Reuters)