Key Points
- Netflix has hired a financial advisor as it explores a possible bid for WBD, according to a report.
- The streaming giant also has access to confidential financial information regarding WBD’s business, the report says.
- Netflix is interested in WBD’s film and streaming businesses, not its cable units.
Warner Bros Discovery (WBD) has allowed Netflix to access a limited amount of confidential financial information about its business as the streaming giant explores a possible offer to acquire some of WBD’s media units, according to a report on Thursday.
The report, from Reuters, said Netflix has retained financial advisor Moelis & Company as it explores a possible offer to acquire certain WBD assets.
The consideration comes at a time when WBD is pressing forward with a plan to spin out its cable networks business from its more-lucrative film and streaming divisions. It also comes as other entertainment giants have made or are considering their own offers, including Paramount, whose numerous bids have been rejected over the past few weeks.
While Paramount is interested in buying all of WBD, Netflix’s offer is based largely on the streaming and film business that WBD intends to retain after it spins out the cable networks, Reuters reported. It isn’t clear if Netflix has made an offer to WBD or for how much. Paramount’s earlier offers topped $24 per share, which executives felt were too low.
During a conference call with investors last week, Netflix co-CEO Ted Sarandos said the company is more of a builder than a buyer, though it evaluates possible acquisitions when they make financial sense.
Acquiring WBD would give Netflix a sizable amount of intellectual property, including the film studio’s classic Looney Tunes library, DC Comics, HBO and hit television shows like “The White Lotus,” “The Sopranos,” “Friends,” “Ted Lasso” and “Full House,” among others.
During its most-recent financial quarter, Netflix earned $11.51 billion in revenue from its streaming business, an increase of 17 percent on a year-over basis. WBD will disclose its third quarter (Q3) earnings on November 6.
