Netflix mulls acquiring Warner Bros Discovery; company hires bank, gains financial data access — Key things to know
Netflix has tapped an investment bank as it actively explores a bid to buy Warner Bros. Discovery’s studio and streaming business, Reuters reported, citing three people with knowledge of the matter.
The streaming giant has hired Moelis & Co as its financial adviser so it can evaluate a potential bid, two people said, quoted by Reuters.
Moelis & Co is the investment bank that advised Skydance Media during its successful acquisition of Paramount Global.
Netflix also provided access to the data room the company needed to bid on because it contained financial details, two people told Reuters.
Netflix, Moelis or Warner Bros. Discovery have not commented on the potential deal.
A successful deal for Warner Bros.’ studio business means Netflix could take control of some of the most popular and successful stories and characters worldwide, such as the Harry Potter and DC Comics series.
Many of Netflix’s biggest hits, including original series like “Running Point,” “You” and “Maid,” were produced by Warner Bros.’ prolific television studio. Reuters predicts that HBO and its companion streaming service will add more prestige series and subscribers to this collection.
Currently available in India is JioStar, which Jio will launch with Warner Bros. in April 2023. After signing a deal with HBO, Max Original and Warner Bros. It is a dedicated publishing platform for content.
What is Netflix’s growth plan?
Netflix CEO Ted Sarandos told investors last week that the company looks at acquisitions based on certain criteria, even though its policy is geared toward “builders rather than buyers.” The company evaluates these opportunities based on issues such as the size of the offering and whether it will help strengthen the company’s entertainment value.
The Netflix CEO also said the streaming giant would not be interested in acquiring Warner Bros. Discovery’s cable television networks, which include legacy media channels such as CNN, TNT, Food Network and Animal Planet.
“We’ve been very clear in the past that we have no interest in owning legacy media networks… There’s no change in that,” Sarandos told investors in a video announcing Netflix’s Q3 results.
Warner Bros. is considering options
Warner Bros. Discovery announced last week that it would begin evaluating options after receiving three unsolicited offers from Paramount Skydance to acquire the entire company.
The company said its board will evaluate whether it wants to proceed with the planned spin-off.
The move would separate Warner Bros.’ film and television studios, HBO and its companion HBO Max streaming service, from its television business or seek to sell all or part of the company.
