Recent reports indicate that Netflix is exploring the possibility of acquiring Warner Bros. Discovery’s studio and streaming assets. According to a report from Reuters, Netflix is “actively exploring” a bid and has engaged a financial institution to evaluate the potential offer.
Sources have informed Reuters that Netflix now has access to Warner Bros. Discovery’s financial data, deemed essential for making a bid. Prior to this, Bloomberg reported that Netflix, along with Amazon and Apple, is considering acquiring either portions or the entirety of Warner Bros. Discovery. Additionally, Comcast’s co-CEO Mike Cavanagh has suggested that a potential deal could also be on the table.
In a recent earnings call, Netflix co-CEO Ted Sarandos addressed the speculation surrounding Warner Bros. Discovery’s decision to put itself up for sale. He stated that Netflix has typically focused on being “more builders than buyers,” while also acknowledging that the company continuously assesses merger and acquisition opportunities to determine if they would be beneficial.
Sarandos emphasized the company’s inclination to remain selective in its dealings, asserting that Netflix prioritizes organic growth and intends to invest responsibly in that growth. He explicitly noted that Netflix is not interested in acquiring legacy media networks, referencing Warner Bros. Discovery’s ownership of traditional channels such as CNN, TNT, and HGTV.
As discussions regarding potential acquisitions continue, it remains to be seen how these negotiations will unfold and what implications they may have for the streaming landscape.
Source: https://www.theverge.com/news/811462/netflix-warner-bros-discovery-bid-rumor