Netflix explores the Potential Acquisition of Warner Bros Discovery’s Studio and Streaming Assets

Netflix is reportedly weighing a bid to acquire Warner Bros Discovery’s (WBD) studio and streaming operations, in what could become one of the most consequential mergers in modern entertainment history.

According to three sources familiar with the matter, who spoke to Reuters, the streaming giant has retained Moelis & Co., the investment bank that recently advised Skydance Media on its successful acquisition of Paramount Global, to evaluate the feasibility of such a deal.

Two of the sources said Netflix has already been granted access to Warner Bros Discovery’s financial data room, giving it the opportunity to review detailed figures about the company’s studio and streaming assets. This step is typically seen as a precursor to a formal offer.

Both Netflix and Warner Bros Discovery declined to comment on the development. Moelis & Co. also refused to confirm its role in the talks.

If completed, the acquisition would mark Netflix’s most audacious move since it transitioned from DVD rentals to global streaming more than a decade ago. Control of Warner Bros’ vast library — which includes iconic franchises such as Harry Potter, DC Comics, The Lord of the Rings, and Game of Thrones — would immediately strengthen Netflix’s position as Hollywood’s dominant content powerhouse.

Warner Bros’ television arm is also a prolific supplier of programming to Netflix, producing hits such as You, Running Point, and Maid. Analysts say full ownership could secure Netflix a more predictable pipeline of top-tier shows and reduce its long-term licensing costs.

The deal would also bring HBO and its streaming service, Max, under Netflix’s umbrella — adding a new dimension to its prestige content portfolio and potentially boosting its subscriber base in key international markets.

Netflix CEO Ted Sarandos, however, has consistently maintained that the company is “more builders than buyers.” Speaking during the company’s third-quarter investor video last week, Sarandos reiterated that Netflix is selective about acquisitions but open to opportunities that “strengthen the company’s entertainment offerings.”

“We’ve been very clear in the past that we have no interest in owning legacy media networks,” Sarandos said, explicitly ruling out an acquisition of Warner Bros Discovery’s linear television networks such as CNN, TNT, Food Network, and Animal Planet. “There is no change there.”

Warner Bros Discovery, led by CEO David Zaslav, announced last week that it was exploring strategic options after receiving multiple unsolicited acquisition offers, including one from Skydance Media, now known as Paramount Skydance. The company’s board is weighing whether to continue with its planned corporate split — which would separate its film, TV, and streaming operations from its traditional cable business — or to pursue an outright sale of parts or all of the company.

Comcast has also been named among potential bidders. President Mike Cavanagh hinted last Thursday that Comcast is evaluating “complementary” media assets that could enhance its portfolio. Addressing skepticism about regulatory hurdles, he said, “More things are viable than maybe some of the public commentary that’s out there.”

Analysts note that Netflix’s potential entry into the bidding war reflects how aggressively major streamers are repositioning amid intense competition and shifting consumer behavior. With Warner Bros Discovery struggling under heavy debt and Netflix looking to expand its original content ownership, a merger could reshape the global entertainment landscape.

If Netflix proceeds, it would represent its boldest attempt yet to integrate vertically, uniting content creation, distribution, and streaming under one roof, while cementing its dominance as both a studio and a global entertainment platform.