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Streaming giant Netflix is reportedly seeking to acquire the entertainment conglomerate Warner Bros. Discovery. In its Friday exclusive, Reuters reported that Netflix is actively considering gaining control over WBD's studio and streaming network and has hired Moelis & Co. to assess the potential value of a merger deal. The investment bank played a major role in the merger of Paramount Global and Skydance Media.Citing sources familiar with the matter, the report added that Netflix was granted access to WBD’s financials to explore a possible offer. However, neither Netflix nor Warner Bros. Discovery has publicly commented on the potential acquisition.Warner Bros. Discovery announced a company split earlier this year, set to take effect next year. The split was planned to separate the "Streaming & Studios" division from the "Global Networks" outfit. WBD's current CEO, David Zaslav, will be leading the streaming business. On the other hand, the current CFO, Gunnar Wiedenfels, will take over as the CEO of the TV business. The press release elaborated on the ownership of each company following the split."The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries," the press release read.It continued,"Global Networks will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R)."According to Deadline’s October 21 report, multiple companies expressed interest in acquiring Warner Bros. Discovery. Paramount Skydance also made a bid to acquire the conglomerate ahead of its separation.Netflix's stance on mergers amid reports of interest in acquiring Warner Bros. DiscoveryLetsCinema @letscinemaLINKNetflix reportedly preparing a bid to buy Warner bros. It’s eyeing the film studio and its streaming arm, rather than acquiring all of Warner Bros. Discovery (WBD), which includes a sprawling portfolio of cable networks, IP divisions, and legacy broadcast arms. If NetflixThe Reuters report mentioned that Netflix would only be interested in owning the Streaming & Studios division of WBD. Highlighting a previous statement from Netflix's co-CEO Ted Sarandos, the media house noted that the streaming giant might not be drawn to the TV network division of WBD. In a recent third-quarter investor meeting, Sarandos said,"We've been very clear in the past that we have no interest in owning legacy media networks. There is no change there."During the earnings interview, Sarandos also shared the company's view on mergers and acquisitions. While noting that the company had been "more builders than buyers," Sarandos said,"We focus on profitable growth and reinvesting in our business, both organically and through selective M&A. And when it comes to M&A opportunities, we look at them and we look at all of them, and we apply the same framework and lens that we look at when we look to invest in a build."As per Deadline, while speaking at the Bloomberg Screentime conference in Los Angeles last month, Netflix Co-CEO Greg Peters dismissed the speculation of acquiring Warner Bros. Discovery."We come from a deep heritage of being builders rather than buyers. One should have a reasonable amount of skepticism around big media mergers. They don’t have an amazing track record over time," Peters stated.Weeks after the co-chief downplayed the speculation, reports emerged that Netflix had hired an investment bank.It is important to note that no official confirmation has been made from any of the stakeholders involved.
