Netflix is considering moving forward with a proposal to acquire Warner Bros Discovery, owner of CNN studios and rival HBO.
Netflix is considering acquiring the studio and streaming business streaming of Warner Bros Discovery, having already hired a financial consultant and obtained access to confidential information about the company, according to sources close to the process revealed this Friday.
According to two of these sources, the streaming turned to the investment bank Moelis & Co — the same one that advised Skydance Media on the successful purchase of Paramount Global — to evaluate a possible proposal. Netflix will have already received access to data roomwhere the financial data necessary for detailed analysis of the operation is located.
To be concretized, the acquisition would give Netflix control of some of Hollywood’s most profitable franchisesfor example, Harry Potter and DC Comics. The HBO catalog and the HBO Max service would add even more prestigious content and new subscribers to the platform.
Netflix co-chief executive Ted Sarandos recently told investors that while the company has historically had a culture more focused on building from scratch than buying, it evaluates acquisitions whenever they represent a significant opportunity and strengthen its entertainment offering.
Sarandos made it clear, however, that Netflix is not interested in acquiring Warner Bros. Discovery’s cable television channels — which include CNN, TNT, Food Network and Animal Planet.
Warner Bros Discovery announced last week that it is analyzing several strategic options, after receiving three proposals unsolicited requests from Paramount Skydance to acquire the entire company. The board of directors is now considering whether to move forward with the group’s division plan — separating the film and television studios and HBO from the television segment — or whether to proceed with the total or partial sale of the company.
Meanwhile, Comcast president Mike Cavanagh revealed that he is also evaluating media assets complementary to his current portfolio: “there are more viable possibilities than what public perception suggests”, he said.
Neither Warner Bros Discovery nor Moelis commented on the matter, and Netflix did not respond to requests for clarification.
