Netflix hires bank to explore Warner Bros Discovery bid

According to Reuters, Netflix has retained Moelis & Co. for a possible bid. The investment bank previously advised Skydance Media on its successful bid for Paramount Global. Reuters stated that its information on the possible bid was based on three sources familiar with the matter.

Trade title Deadline also reported that Netflix is “looking into” the possibility of a move on the part of Warner Bros Discovery (WBD), citing a source close to events.

Last week, WBD said it had begun a strategic review process for a possible sale following “unsolicited interest” from “multiple parties.”

Warner Bros film studios' recent credits include James Gunn’s Superman, A Minecraft Movie, Ryan Coogler’s and Michael B. Jordan’s Sinners, Final Destination Bloodlines, Brad Pitt’s F1: The Movie, and Weapons.

WBD’s television studio also produces Netflix hits, including Running Point, You, and Maid. The company’s HBO Max streaming service would also come with more hit dramas and subscribers if Netflix proceeded with an acquisition.

Ted Sarandos, CEO of Netflix, told investors last week that the company is traditionally "more builders than buyers," but that it does evaluate acquisitions based on criteria such as the size of the opportunity and whether it would strengthen the company's entertainment offerings.

However, Sarandos suggested that he would not be interested in buying WBD’s cable television networks, which include CNN, TNT, Food Network, and Animal Planet.

"We've been very clear in the past that we have no interest in owning legacy media networks," Sarandos confirmed.

Netflix posted $10.5bn in revenue in the first three months of the year, the first quarter it hasn’t disclosed quarterly subscriber figures. Discover more here.