One of Hollywood’s biggest studios, Warner Bros. Discovery, is looking to be acquired by another major company, and Netflix is one of the potential buyers. WBD’s latest announcement has shaken the industry, sparking all kinds of theories about what the buyout could mean for the studio harboring successful franchises like The Lord of the Rings, Harry Potter, and everything in the superhero realm of DC Comics. What has been confirmed so far is that the rumors were true, and the studio is currently on sale, with Netflix, Comcast, and Paramount Skydance circling.
Per the report by CNBC, after the studio announced it’s up for sale, company shares went “9% higher in premarket trading.” The announcement confirms that WBD has rejected Paramount Skydance’s initial offer, while CNBC reports that a higher bid from another undisclosed studio was placed, and WBD also rejected it.
WBD is saying that the separation between Warner Bros. and Discovery Global is still on track while they analyze offers from multiple parties (the separation of both companies was set to be completed next April). This would give the buying studio the possibility of only acquiring the entire catalog of Warner Bros., from the streaming assets to the studio’s library. The buyer could also buy Warner Bros. Discovery as it is, and then decide on a bigger merger (think of a Netflix/Warner/Discovery mega-giant). David Zaslav, current CEO and President of Warner Bros. Discovery, offered his own statement:
“We continue to make important strides to position our business to succeed in today’s evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and scaling HBO Max globally. We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”
What Netflix’s Acquisition of Warner Bros. Discovery Could Mean
At first glance, Netflix potentially acquiring Warner Bros. Discovery is just a strategic move. It doesn’t mean that the major conglomerate will cease to exist, or that its most important properties will now feature the huge red “N” in the credits. For now, it is one company buying another, and how this affects WBD depends on what Netflix decides to do in the short term. It is also unclear what Netflix plans to do about the companies’ potential separation.
Netflix (or the studio with the highest bid) is on the road to significantly expanding its reach by becoming a massive superstudio that controls half of Hollywood’s most important franchises. However, this doesn’t mean this power move does not bring any risks with it. Despite having a record-breaking year at the box office, Warner Bros. Discovery has been struggling since 2022. Whether Netflix can solve this depends on the radical changes that the buyout will surely bring to the table. Hopefully, the theatrical landscape is not significantly affected, but that may be a pipe dream if the dominant streamer continues to acquire assets to boost its own subscriber count.