Netflix is reportedly exploring the possibility of acquiring Warner Bros Discovery’s film studio and streaming businesses, a move that could dramatically reshape the entertainment industry. According to sources familiar with the talks, the company has brought on investment bank Moelis & Co. to advise on a potential offer and has been given access to Warner Bros Discovery’s financial records.
If pursued, the deal could give Netflix control over some of the most iconic franchises in Hollywood while strengthening its position in the increasingly competitive streaming market, where rivals like Disney, Amazon, and Apple are constantly expanding their content portfolios.
Netflix Enlists Moelis & Co. for Guidance
Two individuals close to the matter confirmed that Netflix has engaged Moelis & Co., the same firm that recently guided Skydance Media in its successful purchase of Paramount Global. The move underscores Netflix’s seriousness about evaluating the opportunity and understanding the financial implications of such a large-scale acquisition.
Sources also said the company has access to Warner Bros Discovery’s confidential “data room,” which contains the detailed financial information potential buyers review before making formal bids. This stage of due diligence typically signals that a company is actively assessing whether an acquisition aligns with its long-term strategic goals.
A Massive Expansion of Netflix’s Content Universe
Should Netflix go through with the deal, it would gain ownership of one of Hollywood’s most valuable and historic studios. Warner Bros Discovery holds the rights to several of the world’s most successful entertainment franchises, including Harry Potter, DC Comics, and The Lord of the Rings. Adding these to Netflix’s catalog could dramatically expand its intellectual property base and provide endless opportunities for future adaptations, spin-offs, and exclusive streaming rights.
Warner Bros Television, one of the industry’s largest producers, already creates several hit shows for Netflix, such as You, Maid, and Running Point. Owning the studio outright would bring these productions directly under Netflix’s control, reducing licensing costs and giving the company greater creative and financial flexibility.
In addition, acquiring HBO and its streaming platform Max (formerly HBO Max) would position Netflix as a dominant force in prestige television. HBO’s award-winning dramas — including Succession, The Last of Us, and House of the Dragon — could elevate Netflix’s reputation for quality storytelling while attracting more premium subscribers globally.
Netflix’s Approach to Acquisitions Remains Measured
Netflix has long been known for building its own success rather than buying it. During the company’s recent earnings presentation, co-CEO Ted Sarandos reiterated that Netflix typically favors internal development over acquisitions but remains open to opportunities that significantly enhance its entertainment offering.
He also noted that Netflix is not interested in legacy television networks — such as CNN, TNT, or Food Network — emphasizing that the company’s focus remains firmly on digital streaming rather than traditional cable operations. That stance is consistent with Netflix’s strategy of investing in online content delivery and avoiding the financial and operational complications associated with linear media.
Warner Bros Discovery Weighs Its Options
The potential bid from Netflix comes as Warner Bros Discovery evaluates multiple unsolicited acquisition offers, including one from Paramount’s parent company, Skydance Media. The company’s board is reportedly reviewing two main strategies:
- Proceeding with a corporate split that separates its studio and streaming assets — including Warner Bros, HBO, and Max — from its traditional television networks.
- Pursuing a sale, either partial or complete, of those assets to interested buyers like Netflix.
This evaluation follows a difficult financial period for Warner Bros Discovery, which has been struggling to reduce debt stemming from its 2022 merger between WarnerMedia and Discovery Inc. The company’s stock has also come under pressure amid slowing subscriber growth and increasing competition in the global streaming market.
Industry Eyes a Potentially Historic Merger
If Netflix decides to move forward, a deal of this scale would represent one of the most significant mergers in entertainment history. The combination would unite Netflix’s unmatched global subscriber base with Warner Bros Discovery’s deep library of franchises and content production infrastructure.
However, analysts warn that such a merger would likely face close regulatory scrutiny in the U.S. and abroad, given the combined company’s potential influence over both streaming distribution and film production.
Meanwhile, other major players are also signaling interest in media assets. Comcast President Mike Cavanagh recently stated that the company is examining potential acquisitions that would complement its existing portfolio. His remarks suggest that the industry is bracing for a new wave of consolidation as companies seek to scale up and stay competitive in a market where content creation and distribution costs continue to rise.
