Netflix exploring Warner Bros Discovery studio and HBO assets for potential deal

New Delhi: Netflix is exploring a possible bid for Warner Bros Discovery’s studio and streaming assets, according to a Reuters report citing three people familiar with the matter.

The video streaming company has hired Moelis & Co, the investment bank that advised Skydance Media on its successful Paramount Global bid, to evaluate a potential offer, two of the sources told Reuters. Netflix has also been granted access to the data room containing Warner Bros Discovery’s financial information.

If successful, an acquisition would give Netflix control over some of Hollywood’s most valuable franchises, including Harry Potter and DC Comics. Warner Bros’ television studio is also behind several Netflix hits such as Running Point, You and Maid. The addition of HBO and its streaming service could strengthen Netflix’s position in prestige drama and subscriber retention.

Netflix co-chief executive Ted Sarandos recently told investors that while the company is traditionally “more builders than buyers,” it continues to assess opportunities that could enhance its entertainment portfolio.

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

Warner Bros Discovery announced last week that its board would review several unsolicited acquisition proposals, including one from Paramount Skydance, and evaluate whether to proceed with a planned split separating its film, television, and streaming operations from its cable network business.

Meanwhile, Comcast President Mike Cavanagh told investors on Thursday that the company is considering media assets that would be “complementary” to its existing portfolio. Addressing concerns about regulatory approval, he added that “more things are viable than maybe some of the public commentary that’s out there.”