Netflix eyes takeover of Warner Bros Discovery’s studio and streaming empire

...Streaming giant enlists Moelis & Co to assess potential multi-billion-dollar offer

Netflix is reportedly considering a major acquisition of Warner Bros Discovery’s (WBD) studio and streaming business, in what could become one of the entertainment industry’s biggest shake-ups in years.

According to Reuters, the global streaming leader has appointed investment bank Moelis & Co., best known for advising Skydance Media on its US$8 billion merger with Paramount Global to evaluate a potential offer.

WBD holds a vast array of sports broadcasting rights, including Major League Baseball (MLB), the National Hockey League (NHL), and NASCAR in the US, all shown on TNT Sports. However, TNT Sports would be excluded from any Netflix acquisition, as WBD plans to spin off its cable television networks into a separate company.

Netflix’s interest would instead centre on WBD’s Eurosport and TNT Sports operations in the UK and Latin America, providing access to coveted rights such as the Olympic Games in Europe and the Premier League in the UK. The potential deal would also see Netflix take control of HBO Max and Discovery+, strengthening its position in the global streaming market.

In recent years, Netflix has been expanding its footprint in live sport, including securing global rights to National Football League (NFL) games on Christmas Day. Adding WBD’s sports properties could transform Netflix into a serious player in the live sports broadcasting arena worldwide.

Acquiring WBD’s studio business would also give Netflix ownership of some of Hollywood’s most valuable franchises, including Harry Potter and DC Comics. A new Harry Potter TV series is slated for release in 2027, while the DC cinematic universe relaunched this summer with a new Superman film.

Such a deal would represent a bold shift for Netflix, whose chief executive Ted Sarandos, has previously characterised the company as “more builders than buyers”. However, Netflix has demonstrated a willingness to pursue strategic deals that enhance its content slate and attract new subscribers, particularly as it ventures further into live sports.

Sarandos reaffirmed to investors in October that Netflix has “been very clear in the past that we have no interest in owning legacy media networks”, adding that “there is no change there.”

WBD, which recently put itself up for sale, has drawn interest from several potential buyers, including rival media company Paramount and other unnamed suitors.