Netflix Eyes Warner Bros. Discovery Acquisition
▼ Summary
– Netflix is reportedly exploring a bid to acquire Warner Bros. Discovery’s studio and streaming businesses, according to a Reuters report.
– Netflix has gained access to Warner Bros. Discovery’s financial data room, which is necessary for making a formal offer.
– Other companies like Amazon, Apple, and Comcast are also considering purchasing parts or all of Warner Bros. Discovery.
– Netflix’s co-CEO Ted Sarandos stated the company has historically preferred building over buying but evaluates acquisition opportunities for added value.
– Sarandos emphasized Netflix’s focus on organic growth and expressed no interest in owning legacy media networks like CNN or TNT.
Fresh speculation is swirling around a potential seismic shift in the streaming industry, with Netflix reportedly exploring a bid for Warner Bros. Discovery. According to a recent Reuters report, the streaming leader is actively investigating a purchase of the company’s studio and streaming divisions, going so far as to hire a bank to assist with a potential offer.
Insiders have indicated that Netflix has gained access to the confidential “data room” at Warner Bros. Discovery. This secure virtual space holds the detailed financial information necessary for any serious bidder to formulate an offer. This development follows a separate Bloomberg report from last week that named Netflix, Amazon, and Apple as parties interested in acquiring segments, or even the entirety, of the media conglomerate. Adding to the merger chatter, Comcast co-CEO Mike Cavanagh has also expressed openness to a potential deal.
When directly questioned about Warner Bros. Discovery’s apparent move to position itself for a sale, Netflix co-CEO Ted Sarandos offered a measured response during a recent earnings call. He noted that the company’s philosophy has “historically” leaned more towards building its own assets rather than acquiring others. Despite this preference for organic growth, Sarandos clarified that Netflix consistently evaluates merger and acquisition possibilities, but only when they present a clear opportunity to add significant value to their business.
Sarandos emphasized a selective and disciplined approach. “In general, we believe that we can be and we will be choosy,” he stated. He pointed to Netflix’s strong core business and its primary focus on aggressive yet responsible organic investment as the main drivers of growth. Crucially, he also drew a line in the sand, stating that Netflix has “no interest in owning legacy media networks.” This is a significant detail, as Warner Bros. Discovery’s portfolio includes well-established cable channels such as CNN, TNT, and HGTV, which would fall into that exact category.
(Source: The Verge)
