Netflix Could Control Harry Potter And HBO As It Weighs Blockbuster Warner Bros. Discovery Bid: Report

Netflix Inc. (NASDAQ:NFLX) is reportedly exploring a potential deal to acquire Warner Bros. Discovery's (NASDAQ:WBD) studio and streaming assets.

Netflix Eyes Warner Bros. Studio And Streaming Assets

Netflix has hired investment bank Moelis & Co. (NYSE:MC) — the same firm that advised Skydance Media in its successful bid for Paramount Global — to evaluate a potential offer, reported Reuters, citing three sources familiar with the matter.

Netflix has also gained access to Warner Bros. Discovery's financial data room, which contains detailed financial information needed to prepare a bid, the report said.

Netflix and Moelis did not immediately respond to Benzinga's request for comments.

Control Over Iconic Franchises Could Strengthen Netflix's Portfolio

Owning Warner Bros.' studio division would give Netflix control over some of Hollywood's most valuable franchises, including "Harry Potter" and "DC Comics."

Warner's television studio also produces several Netflix originals, such as "Running Point," "You" and "Maid."

The addition of HBO and HBO Max could bolster Netflix's prestige content lineup and attract more premium subscribers.

During the company's third-quarter earnings discussion last week, Netflix Co-CEO Ted Sarandos said the company remains "more builders than buyers" but does consider acquisitions that offer scale and strategic fit.

At the time, Sarandos also made it clear that Netflix has no interest in acquiring Warner Bros Discovery's traditional cable networks, such as CNN, TNT, Food Network and Animal Planet.

Netflix posted third-quarter revenue of $11.51 billion, up 17.2% year-over-year, narrowly missing Wall Street's consensus estimate of $11.514 billion.

The company also reported its highest quarterly viewing share in the U.S. and U.K. since late 2022.

Warner Bros. Discovery Evaluates Strategic Options

Warner Bros. Discovery, earlier this month, began evaluating its options after receiving multiple unsolicited offers, including one from Paramount Skydance (NASDAQ:PSKY).

The company's board is reportedly weighing whether to move ahead with its planned split — separating the film, television, and streaming assets from its cable networks — or to pursue a full or partial sale.

Meanwhile, Comcast Corp (NASDAQ:CMCSA) President Mike Cavanagh told investors on Thursday that the company is also assessing "complementary" media opportunities, suggesting broader industry consolidation may be on the horizon.

Price Action: Netflix shares slipped 1.04% in Thursday's regular session but rebounded 3.21% in after-hours trading, according to Benzinga Pro data.

Benzinga's Edge Stock Rankings show that NFLX maintains a strong long-term price trend, while its short and medium-term trends remain under pressure. More detailed performance insights can be found here.