Netflix Considers Buying Warner Bros. Discovery Production Studios

Netflix is evaluating a potential acquisition of Warner Bros. Discovery's studio and streaming assets, people familiar with the matter said, in what would mark one of the largest deals in the media industry this year.

The streaming giant has retained Moelis & Co., the investment bank that advised on the Skydance Media-Paramount Global merger, to oversee the bid, the people said. Warner Bros. Discovery has granted Netflix access to its financial data to continue the due diligence process, they added.

The potential transaction would give Netflix control of one of Hollywood's most valuable content libraries, including the Harry Potter franchise, DC Comics characters, HBO's "Game of Thrones" and the sitcom "Friends." It would also include WBD's global networks, which comprise CNN, TNT, Food Network and Discovery Channel.

Netflix's interest centers primarily on WBD's studio and streaming operations rather than its legacy cable assets, according to people briefed on the discussions. Netflix Chief Executive Ted Sarandos said in a recent investor presentation that the company has "no interest in owning legacy media networks," suggesting it could divest WBD's cable television properties.

Warner Bros. Discovery Financial Struggles Drive Media Consolidation Wave

The deal talks come amid a second wave of media consolidation as traditional entertainment companies grapple with declining linear television revenues while streaming platforms seek scale to compete globally.

Warner Bros. Discovery has faced mounting financial pressures since its formation. The company posted an $11.5 billion net loss in 2024, weighed down by a $9.1 billion goodwill impairment charge and shrinking cable revenues. Its market capitalization currently stands at approximately $53 billion, down from over $50 billion when the Warner-Discovery merger closed in 2022.

In response, Warner announced plans in June 2025 to split into two divisions: one housing streaming and studios, the other containing global linear networks. The company said Oct. 21 it had received "unsolicited interest from multiple parties" and would review strategic alternatives while continuing to pursue the planned mid-2026 split.

Paramount Global has made at least three unsuccessful bids to acquire all of Warner Bros. Discovery, according to people familiar with the discussions. The offers ranged from approximately $20 to just under $24 a share, with the most recent bid comprising 80% cash. Warner's board rejected each proposal as undervaluing the company, the people said.

Comcast President Mike Cavanagh told investors the company is evaluating "complementary assets," suggesting interest in potential acquisitions following completion of its cable network spinoff.

Netflix Acquisition Strategy: Content Library vs. Debt Challenges

For Netflix, acquiring Warner's premium content library and production infrastructure would bolster its competitive position against rivals including Walt Disney Co., Amazon.com Inc. and Apple Inc.'s Apple TV+.

The deal would saddle Netflix with WBD's debt load of approximately $34 billion and require it to integrate complex streaming operations. Warner Bros. Discovery's debt stood at roughly $34 billion in net debt at the end of the first quarter of 2025.