Netflix has reportedly made a substantial cash offer to acquire Warner Bros Discovery, a prominent TV and film group, as the Hollywood studio explores a sale that could significantly impact the US media landscape. According to a recent report, Netflix has joined other major media companies, including Paramount and Comcast, the owner of NBCUniversal, in the second round of an auction for Warner Bros Discovery.
The parent company of HBO, CNN, and the Warner Bros film studio officially announced its intention to sell in October, following multiple unsolicited offers. This decision was made after the company initially considered splitting into two separate entities, one focused on streaming and studios, and the other on traditional cable networks.
Warner Bros Discovery has been the subject of interest from several major media players, including Paramount, which is now owned by the billionaire tech family of Oracle founder Larry Ellison. David Ellison, the CEO of Paramount and son of Larry Ellison, had made several offers for the entertainment group before Warner Bros Discovery CEO David Zaslav initiated the formal sale process.
If successful, the acquisition would significantly enhance Netflix’s content production capabilities and provide the company with premium assets, including HBO and Warner Bros studios. The deal would likely be subject to close scrutiny by antitrust authorities in the United States and other major markets, given the potential impact on the media landscape.
The potential acquisition has sparked concerns among some top Hollywood players, who have expressed a preference for Warner Bros to be acquired by a different company. They cite concerns that Netflix may limit theatrical releases of its film productions, which could have significant implications for the film industry.
The acquisition process is ongoing, with Netflix reportedly working on a bridge loan totaling tens of billions of dollars to finance its potential acquisition. The outcome of the sale is expected to have significant implications for the US media landscape, and the company’s future direction will be closely watched by industry observers and regulators alike.