Netflix hires bank to explore Warner Bros Discovery acquisition
What's the story
Netflix is said to be considering a bid for Warner Bros. Discovery's studio and streaming operations. The company has hired Moelis & Co, an investment bank that previously advised Skydance Media on its successful bid for Paramount Global. This strategic move comes after Netflix was given access to financial data required for making a potential offer.
Strategic advantage
Potential acquisition could bolster Netflix's content library
Acquiring Warner Bros.' studio operations could give Netflix control over some of Hollywood's most popular stories and characters, including the Harry Potter and DC Comics franchises. The prolific television studio also produces many of Netflix's hits, including original series such as Running Point, You, and Maid. This potential acquisition would further enhance Netflix's already extensive content library.
Acquisition criteria
Netflix CEO clarifies company's stance on acquisition
Netflix's CEO Ted Sarandos recently told investors that while the company is more of a builder than a buyer, it does consider acquisitions based on the opportunity size and how it would enhance its entertainment offerings. However, Sarandos clarified that Netflix isn't interested in acquiring Warner Bros Discovery's cable television networks such as CNN, TNT, Food Network and Animal Planet.
Company response
Warner Bros. Discovery exploring options after receiving unsolicited offers
Last week, Warner Bros. Discovery revealed it would start exploring options after receiving three unsolicited offers from various parties, including Paramount and Skydance, for the entire company. The board will decide whether to proceed with its planned split, which would separate the Warner Bros film and television studios, HBO and HBO Max streaming service from its television business, or sell all or parts of the company.