Netflix Considers Warner Bros. Discovery Acquisition, Hires Bank for M&A Proposal
Netflix is reportedly considering a significant acquisition in the media landscape. The streaming giant is exploring a bid for Warner Bros. Discovery (WBD), with plans facilitated by investment bank Moelis & Co. This move could potentially bring iconic franchises, including DC Universe’s films and classic titles, under Netflix’s umbrella.
Netflix’s Acquisition Plans for Warner Bros. Discovery
According to a recent report from Reuters, Netflix is “actively exploring” the possibility of acquiring WBD. Moelis & Co., which previously advised on the acquisition of Paramount Global, has been retained by Netflix to assist in the bid. WBD’s board has acknowledged receiving interest from multiple parties regarding mergers and acquisitions (M&A).
Details of the Proposed Bid
As part of the acquisition process, WBD has granted Netflix access to its financial statements. However, it’s still unclear whether Netflix’s offer would encompass WBD’s HBO Max streaming service. Representatives from Netflix, WBD, and Moelis & Co. declined to comment on the acquisition discussions.
Netflix’s Position on Media Networks
During a recent earnings call, Netflix co-CEO Ted Sarandos stated that the company does not intend to own legacy media networks. This suggests that a full acquisition of WBD, which includes networks such as CNN and TBS, may not be on the table. Sarandos emphasized Netflix’s selective approach, highlighting that they are not obligated to pursue any specific acquisition to meet their business objectives.
Competitive Landscape for Warner Bros. Discovery
- David Ellison’s Skydance Media has made three bids to acquire WBD but has faced rejections due to low offers.
- Comcast is also considering a bid for WBD, focusing on its studios and streaming assets.
Future Film Projects
Warner Bros. is planning a range of box-office hits for 2025, including:
- James Gunn’s “Superman”
- A “Minecraft Movie”
- Ryan Coogler and Michael B. Jordan’s “Sinners”
- “Final Destination Bloodlines”
- Brad Pitt’s “F1: The Movie”
- “Weapons”
For 2024, the studio’s highlights include movies like “Dune: Part Two” and “Godzilla x Kong: The New Empire.” Additionally, Warner Bros. Television has created popular content for Netflix, including “You” and “Maid.”
The evolving dynamics of the media industry are indicative of the growing importance of content ownership and streaming capabilities. As Netflix explores acquisition strategies, the outcomes could significantly reshape the entertainment landscape.
