Netflix weighs bid for Warner Bros. Discovery’s studio and streaming business

Netflix is exploring a potential bid for Warner Bros. Discovery’s storied studio and streaming assets, in what could mark a seismic shift in Hollywood’s streaming landscape.

The streaming giant has retained Moelis & Company, the investment bank that recently advised Skydance Media on its successful pursuit of Paramount Global, to assess a possible offer, as per a Reuters report. Netflix has also been granted access to Warner Bros. Discovery’s financial data room, a step typically taken before formal negotiations, the report stated, citing two people familiar with the matter.

A deal would give Netflix control over some of entertainment’s most valuable properties, including the Harry Potter and DC Comics franchises, along with one of television’s most prolific studios — a producer of Netflix hits such as You, Maid and Running Point. Adding HBO and its companion streaming service could also bring an influx of prestige dramas and loyal subscribers to Netflix’s already dominant platform.

During a recent earnings presentation, Ted Sarandos, Netflix’s co-chief executive, emphasized that the company has historically preferred to “build rather than buy,” but said it remains open to acquisitions that could strengthen its slate of entertainment offerings.

“We’ve been very clear in the past that we have no interest in owning legacy media networks,” Sarandos said in the company’s third-quarter investor video. “There is no change there.”

Warner Bros. Discovery, meanwhile, has been weighing its own future. The company announced last week that it had received three unsolicited offers — including one from Paramount Skydance — and would begin reviewing its strategic options. Those include completing a planned split that would separate its film and television studios, HBO, and HBO Max from its traditional television networks, or pursuing a sale of all or parts of the business.

Comcast has also signaled potential interest in expanding its media footprint. Mike Cavanagh, the company’s president, told investors Thursday that Comcast continues to evaluate assets that could “complement” its existing operations. Addressing concerns about regulatory scrutiny, he added, “More things are viable than maybe some of the public commentary that’s out there.”

A Netflix-Warner Bros. Discovery combination would be among the most consequential media mergers in years, combining the world’s largest subscription streaming service with one of Hollywood’s oldest and most prestigious studios. Whether it can clear both financial and regulatory hurdles remains an open question — but the possibility alone underscores how much the streaming wars continue to reshape the entertainment industry.