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Netflix Reportedly Exploring Warner Bros. Discovery Bid
Netflix appears to be rethinking its long-held “build, not buy” philosophy. According to Reuters, the streamer has tapped investment bank Moelis & Co to explore a possible bid for Warner Bros. Discovery’s (WBD) feature and streaming assets, a move that could bring two of animation’s biggest players under the same roof.
People familiar with the talks told Reuters that Netflix has been granted access to WBD’s financial data room, suggesting more than casual interest. A deal would hand Netflix control of a treasure trove of IP, including Looney Tunes, Tom and Jerry, and the DC Comics universe, not to mention the prolific Warner Bros. Animation and television divisions that continue to supply content across the industry.
In the company’s Q3 earnings call last week, CEO Ted Sarandos said Netflix remains selective about acquisitions but will consider deals that strengthen its storytelling slate. He reiterated that the company has “no interest in owning legacy media networks” such as CNN or TNT, signaling that any bid would focus squarely on content and streaming infrastructure.
Netflix’s potential offer comes as Warner Bros. Discovery announced it would consider acquisition offers, including from Skydance Media, and weighs whether to proceed with a long-planned corporate split. Meanwhile, reports indicate that Comcast has also been evaluating WBD’s media assets to see if they are complementary to its current portfolio.
If Netflix moves forward and wins the bidding war, the acquisition would be one of the most consequential mergers in recent Hollywood history and could redefine the balance of power between traditional studios and global streamers.
Jamie’s Take: Mega-media mergers and acquisitions are very rarely, if ever, good for consumers and often result in layoffs and a consolidation of assets. That said, as a fan of animation and the timeless catalog that WBD has been limiting access to over the past several years, a Netflix takeover of the WBD library seems like the best option on the table. Netflix feels far more likely to bring back lost and locked-away series and films and make them available for its customers, something WBD has largely failed to do with HBO Max. This is all supposition on my part, and maybe I’m being naive. I don’t have any more information than anyone who’s read the Reuters report, but this certainly seems like a better option than the Skydance–Paramount merger, especially given the thousands of layoffs expected at that company in the coming weeks.
