The future of Warner Bros. Discovery (WBD) is once again in the spotlight. After months of internal restructuring and a decision to split the company into two separate divisions, one focused on digital content and the other on traditional broadcasting, the U.S. media giant has reportedly put itself up for sale.
Paramount Global/Skydance Media and Comcast Corporation have moved to acquire Warner Bros. Discovery. According to the latest reports, Netflix, Inc. has also joined the race.
Sources suggest that Netflix is actively exploring the possibility of acquiring Warner Bros. Discovery’s studio and streaming assets. The company has reportedly hired a financial adviser and is working with the investment bank Moelis & Co. to access key financial data.
Netflix co-CEO Ted Sarandos commented on the matter, saying:
“It’s true that, historically, we’ve been more builders than buyers, and we think we have plenty of runway for growth without fundamentally changing that playbook. Nothing is a must-have for us to meet our goals that we have for the business. We’ve been very clear in the past that we have no interest in owning legacy media networks, so there is no change there. But in general, we believe that we can be and we will be choosy [about acquisitions]. We have a great business. We’re predominantly focused on growing organically, investing aggressively and responsibly into the growth and returning excess cash flow to shareholders”
Sarandos’ remarks make it clear that Netflix’s focus would be on Warner Bros. Discovery’s flagship brands, from HBO and HBO Max to Warner Bros. Television, DC Studios and the Harry Potter universe. The company’s board is expected to determine in the coming weeks whether to continue with its planned split or pursue a full sale.
