Netflix is examining a potential acquisition of Warner Bros. Discovery’s studio and streaming operations, a move that could be one of the most significant consolidation attempts in the entertainment sector.
According to multiple news reports, Netflix has engaged investment bank Moelis & Co. to advise on a possible transaction and has been granted access to confidential financial data to evaluate the feasibility of a bid.
People familiar with the matter say Netflix is not interested in acquiring Warner Bros. Discovery’s legacy cable networks — such as its news and sports channels — and is instead focused solely on the studio and streaming assets.
These include Warner Bros., one of Hollywood’s most iconic film and television production houses, and the company’s streaming platform. By potentially taking control of the studio, Netflix would gain ownership of major franchises, including Harry Potter, DC Comics, and Game of Thrones.
The exploration marks a notable strategic shift for Netflix. Historically, Netflix has grown by producing content internally and licensing shows from other studios, rather than expanding through large-scale mergers and acquisitions.
Company executives have previously emphasized that Netflix prefers to “build, not buy,” though they also indicated that the company would pursue acquisitions when they clearly expand Netflix’s core strengths.
Industry analysts say this move signals that Netflix now sees scale and ownership of intellectual property as critical advantages in an increasingly crowded streaming market.
Warner Bros. Discovery is simultaneously undergoing its own strategic review. Reports indicate that the company is considering a range of restructuring options, including splitting the business or selling parts of it.
The firm has been under pressure to reduce debt following previous major mergers, and a sale of its studio and streaming assets could provide significant financial relief.
The strategic review began after Warner Bros. Discovery reportedly received unsolicited interest from several potential buyers.
If a transaction proceeds, it would reshape competitive dynamics across the entertainment industry.
Netflix would gain unmatched control over premium franchises and deepen its content library, reducing reliance on licensing deals. For Warner Bros. Discovery, a sale could streamline its business and strengthen its balance sheet.
However, analysts caution that several challenges could hinder the process.
Any acquisition of this scale would likely face regulatory scrutiny, particularly as global authorities examine the impact of consolidation on consumer choice and competition in the streaming market.
Analysts also point out that integrating a traditional studio into Netflix’s digital-first culture and operational structure could be complex and costly.
Other potential bidders are also said to be reviewing Warner Bros. Discovery’s assets, including media and technology companies that may see value in acquiring established studio operations and well-known intellectual property.
The competitive environment may influence whether Netflix ultimately decides to make a formal bid.
At this stage, Netflix’s interest remains exploratory, and no official offer has been submitted. Still, the very fact that Netflix is examining a deal of this magnitude signals a shift in the streaming wars.
The industry is transitioning from growth at all costs to a battle for scale, exclusive franchises, and control over production.
If Netflix advances with the bid — and if it clears regulatory hurdles — the acquisition would mark one of the largest and most transformative deals in entertainment history.
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