Netflix may be preparing to make one of the boldest moves in its history. According to reports from multiple outlets, the streaming giant has hired investment bank Moelis & Co. to explore a potential bid for Warner Bros. Discovery (WBD) — the studio and streaming powerhouse behind HBO Max, Warner Bros. Pictures, and iconic franchises such as Harry Potter and DC Comics.
Netflix Takes a Serious Look
Insiders say Netflix has begun conducting due diligence after being given access to Warner Bros. Discovery’s financial records. The move suggests that Netflix’s interest goes beyond speculation, as the company weighs whether a deal could strengthen its already dominant position in the global streaming market.
If a bid were to move forward, it would mark Netflix’s first major studio acquisition — a step that would transform it from a content distributor and producer into a full-scale media conglomerate with deep intellectual-property ownership.
What’s on the Table
Warner Bros. Discovery has been reviewing strategic options in recent months, including the possibility of splitting its studio and streaming businesses from its traditional television networks such as CNN, TNT, and Discovery Channel. Reports indicate Netflix is primarily focused on the studio and streaming divisions, rather than the legacy cable networks, which face slower growth and declining viewership.
Owning Warner Bros.’ storied film and television library would give Netflix access to some of the most valuable entertainment assets in Hollywood — including franchises like Harry Potter, The Lord of the Rings, and Game of Thrones — all of which could bolster its content portfolio and attract new subscribers.
Industry Impact
If the deal materializes, it could reshape the entertainment landscape. Netflix would gain significant leverage over competitors such as Disney+, Amazon Prime Video, and Apple TV+, while potentially triggering a wave of new mergers as companies race to build scale and exclusive content libraries.
Warner Bros. Discovery, meanwhile, could use the proceeds from a sale to reduce debt and refocus its operations amid a challenging advertising market and costly streaming wars.
Challenges Ahead
Any potential acquisition would face heavy regulatory scrutiny, especially given Netflix’s dominant market position and WBD’s vast media holdings. U.S. and European regulators would likely assess how such a merger could affect competition, content access, and licensing practices.
Financing could also prove complex. Analysts note that Netflix’s market value, while substantial, might still require creative structuring — possibly including stock components or debt financing — to complete a deal that could easily top $40–60 billion, depending on which assets are included.
Market Reaction and Next Steps
News of Netflix’s exploratory talks has already lifted Warner Bros. Discovery’s share price, signaling investor optimism that a bidding process could be underway. However, both companies have declined to comment on the reports.
For now, Netflix’s engagement of Moelis & Co. indicates that the company is testing the feasibility of an acquisition — not yet making a formal offer. The coming months are likely to determine whether Netflix pursues a full-scale bid or walks away after reviewing the numbers.
A Defining Moment for Streaming
The possible union of Netflix and Warner Bros. Discovery would represent a turning point in the streaming era. It would combine the world’s largest subscription platform with one of the oldest and most prestigious Hollywood studios — potentially creating a media superpower unlike anything the industry has seen before.
