TL;DR: Netflix is actively evaluating a bid to buy Warner Bros Discovery’s film, TV, and streaming divisions, including HBO and Max, with the help of investment bank Moelis & Co. The potential $60 billion deal could make Netflix the largest content owner in Hollywood, giving it control over major franchises like Harry Potter and DC Comics.
What Happened
- Netflix has hired Moelis & Co to explore acquiring Warner Bros Discovery’s (WBD) studio and streaming units, as confirmed by multiple reports from Reuters, CNBC, Variety, and Deadline.
- The company has access to WBD’s financial data room for due diligence, signaling serious interest.
- The deal could be valued around $60 billion, including debt, with Netflix focusing only on the studio and streaming assets, not cable networks like CNN, TNT, or Food Network.
Why It Matters
- A successful takeover would give Netflix ownership of prized franchises such as Harry Potter, DC Comics, and Game of Thrones, as well as the HBO and Max streaming platforms.
- This acquisition would transform Netflix from a content buyer into a major Hollywood studio with extensive intellectual property rights.
What Netflix Said
- CEO Ted Sarandos stated, “We’ve been very clear in the past that we have no interest in owning legacy media networks,” reinforcing Netflix’s focus on streaming and studio assets only.
- Sarandos added that Netflix is typically “more builders than buyers” but will pursue strategic acquisitions when they add significant value.
Background on Warner Bros Discovery
- WBD faces over $40 billion in debt following its 2022 merger and is planning to split into studio/streaming and television network divisions by mid-2026.
- The company has received unsolicited bids from Paramount Skydance and others, leading to a strategic review process.
Market and Industry Impact
- WBD shares rose 3.8%, and Netflix shares gained 2.7% following the news.
- Analysts view the acquisition as industry-shifting, potentially consolidating Netflix’s dominance in streaming and global content ownership, though regulatory hurdles remain likely.
What Netflix would get if it acquires Warner Bros:
Assets Acquired | Description |
Warner Bros Studio | Major film and television studio with a vast library of movies and TV shows |
DC Comics Franchise | Rights to iconic characters like Batman, Superman, Wonder Woman, and the entire DC universe |
Harry Potter Franchise | Rights to Harry Potter and related Wizarding World content |
HBO and Streaming Service | Ownership of HBO brand and its streaming platform with premium drama and series |
Popular TV Shows | Titles like Running Point, You, Maid that are already on Netflix |
Film and TV Distribution Rights | Control over theatrical and international distribution networks for Warner Bros content |
Intellectual Property Portfolio | Extensive IP including franchises, characters, and content rights |
Production Facilities and Talent | Physical studio assets and existing talent contracts associated with Warner Bros projects |
Streaming and Studio Business | Combined operations of Warner Bros studio and HBO Max streaming arm |
Excluded or Not Included:
- Cable TV Networks like CNN, TNT, Food Network, Animal Planet are unlikely part of the deal
- Existing third-party content licensing agreements will remain until contract expiration
This acquisition would turn Netflix into a powerhouse content owner and distributor, expanding its global footprint and exclusive content offerings significantly