Netflix taps bank to explore bid for Warner Bros. Discovery

According to three sources familiar with the matter, Netflix is ​​actively exploring a bid for Warner Bros. Discovery’s studio and streaming business, retaining a financial advisor and gaining access to financial information.

The video streaming service has hired Moelis & Co., the investment bank that advised Skydance Media on its successful bid for Paramount Global, to evaluate the potential offer, two sources said. According to two sources familiar with the matter, Netflix has also been granted access to the data room, which contains the financial details needed to make the bid.

Warner Bros. Discovery and Moelis declined to comment. Netflix could not be reached for comment.

Ownership of Warner Bros.’s studio business will give Netflix control over some of Hollywood’s most successful stories and characters, including the Harry Potter and DC Comics franchises.

Warner Bros.’s prolific television studio also produces many of Netflix’s hits, including original series like “Running Point,” “You” and “Maid.” HBO and its sister streaming service will add more prestige dramas and subscribers.

Netflix CEO Ted Sarandos told investors last week that although the company has traditionally been “more builders than buyers,” it evaluates acquisitions based on criteria such as the size of the opportunity and whether it will strengthen the company’s entertainment offering.

Sarandos indicated that Netflix would not be interested in acquiring Warner Bros. Discovery’s cable television networks, which include CNN, TNT, Food Network, and Animal Planet. “We’ve been very clear in the past that we have no interest in owning a legacy media network,” Sarandos said in the company’s third-quarter investor video. “There’s no change there.”

Warner Bros. Discovery announced last week that it would begin evaluating options after receiving a trio of unsolicited offers from Paramount Skydance to acquire the entire company. The company said its board will consider whether to proceed with its planned split, which would separate Warner Bros. film and television studios, HBO and fellow HBO Max streaming service from its television business, or pursue a sale of all or part of the company.

Comcast Chairman Mike Cavanagh told investors Thursday that the company is evaluating media properties that would be “complementary” to its existing business. He also seemed dismissive of those who were skeptical of Comcast getting regulatory approval, saying, “There are more things that are viable than some of the public comments that are out there.”