In what could become one of the most dramatic shake-ups in the entertainment industry, Netflix is reportedly exploring a bid to acquire Warner Bros. Discovery (WBD) — the media powerhouse behind HBO, CNN, and iconic franchises like Harry Potter and DC Comics.
According to a Reuters report published this week, Netflix has hired investment bank Moelis & Co. to assess the potential acquisition. Sources say Netflix has already been granted access to WBD’s internal “data room,” giving it a close look at the company’s confidential financials and assets as part of early due diligence.
What’s Being Discussed
Insiders suggest that Netflix isn’t looking to buy the entire Warner Bros. Discovery empire. Instead, it’s reportedly eyeing the company’s film, television, and streaming divisions, including Max (formerly HBO Max) and Warner Bros. Studios — home to some of Hollywood’s most profitable properties.
The deal, if it goes through, would give Netflix access to one of the most powerful libraries in entertainment, from Friends and The Big Bang Theory to The Lord of the Rings and Harry Potter.
However, sources also made clear that Netflix is not interested in WBD’s cable networks, such as CNN, TNT, or Discovery Channel — parts of the business that continue to face declining revenue amid cord-cutting trends.
Why It Matters
For Netflix, this move could mark a bold shift from its “build, not buy” strategy. CEO Ted Sarandos has previously said the company prefers organic growth, but in recent months Netflix has shown a growing interest in expanding its content library through acquisitions.
For Warner Bros. Discovery, the timing makes sense. The company has been reviewing “strategic alternatives” following heavy debt and underperforming assets after its 2022 merger. WBD recently turned down overtures from Paramount Global, fueling speculation that a larger deal could be on the table.
Challenges Ahead
Even if both sides want the deal, it won’t be simple. Any acquisition of this scale will face intense regulatory scrutiny in both the U.S. and international markets, given the potential impact on competition and media diversity.
There’s also the question of fit. Netflix has never managed legacy cable operations or studio infrastructure of this size. Merging two very different business models — a digital subscription giant and a traditional studio system — would be a complex, risky undertaking.
The Bottom Line
At this stage, no deal has been finalized, and both companies have declined to comment officially. But if Netflix does pull it off, the move would transform the media landscape — instantly making Netflix not just the world’s biggest streaming service, but one of Hollywood’s most powerful studios.
For now, Hollywood waits. Because if this merger happens, it won’t just be another business deal — it’ll be a turning point in how entertainment is made, owned, and streamed around the world.
