Netflix is currently recruiting financial advisors and obtaining financial insights as it looks into acquiring Warner Bros. Discovery’s studio and streaming divisions, according to several sources in the know.
The streaming giant has enlisted the help of investment bank Morris & Co.—the same firm that helped Skydance Media with its purchase of Paramount Global—to assess potential acquisition proposals. Additionally, Netflix has gained access to a data room containing the financial specifics required for making a bid, as shared by two insiders.
Warner Bros. Discovery and Morris have not commented on this matter. Attempts to reach Netflix for comment were unsuccessful.
If Netflix successfully acquires Warner Bros. studio operations, it would gain control over some iconic franchises, including Harry Potter and DC Comics. Moreover, Warner Bros.’ extensive television studio churns out several Netflix originals, such as “Running Point,” “You,” and “Made.” The presence of HBO and its connected services could further boost Netflix’s portfolio with high-quality dramas and additional subscribers.
During a recent discussion with investors, Netflix CEO Ted Sarandos indicated that while the company has generally focused on creating content rather than acquiring it, they do assess potential acquisitions based on the opportunities they present and how they might enhance Netflix’s entertainment offerings.
Sarandos clarified that Netflix is not interested in purchasing Warner Bros. Discovery’s cable channels, which include CNN, TNT, Food Network, and Animal Planet.
He stated, “We have been very clear in the past that we have no interest in owning a legacy media network. Nothing has changed there,” during the company’s third-quarter investor update.
Last week, Warner Bros. Discovery announced it would start exploring options after receiving unsolicited offers from Paramount Skydance aimed at acquiring the entire company.
The board will analyze whether to proceed with a potential divestiture that would separate Warner Bros.’ film and television studio, HBO, and HBO Max from its television operations or consider selling all or part of the company.
Meanwhile, Comcast President Mike Kavanaugh mentioned that the company is assessing media assets that would complement its existing business. He sought to quell concerns about regulatory approval, asserting, “It’s more doable than some of the public comments out there.”
