Netflix Eyes Takeover of Warner Bros Discovery as Bidding War Looms for Hollywood Giant

Netflix is reportedly weighing a bid for Warner Bros Discovery after the famed entertainment conglomerate signalled its willingness to entertain takeover approaches. The streaming powerhouse finds itself vying with the likes of Comcast, the US owner of Sky, in what could develop into a highly competitive auction for one of Hollywood’s most storied portfolios.

A successful bid would see Netflix gain access to an enviable archive, including beloved franchises such as Harry Potter, The Lord of the Rings, Barbie, and television favourites including Friends and Succession. This move follows the recent trend of Silicon Valley giants making bold entries into the film sector, as seen in Amazon’s acquisition of MGM for $8.5bn in 2022.

Warner Bros Discovery, which counts CNN and HBO among its iconic assets, has made it clear that it has received “unsolicited interest” from multiple parties and will undertake a strategic review to assess the best route for unlocking value for shareholders. The company is also considering splitting its studios and streaming businesses from its traditional television networks, attracting further interest from industry heavyweights.

Suitors including Netflix and Comcast are believed to be more attracted to the film and TV studio elements rather than the legacy cable television channels. Meanwhile, a consortium led by the Ellison family—fresh from their $8bn takeover of Paramount and supported by RedBird Capital Partners—has been rebuffed by Warner Bros Discovery following an initial offer deemed too low.

The chessboard of US media is set for dramatic change, as a merger between Paramount and Warner Bros Discovery could create a formidable challenger to Netflix and Disney. However, Warner Bros Discovery’s board has shifted tone from executing its planned spin-off by mid-2026 to embracing a wide-ranging strategic appraisal after rising interest in its assets sent shares soaring more than 11 percent in New York.

Financial pressures remain acute for Warner Bros Discovery, burdened by £28.8bn of debt as of June and wrestling with declining cable television audiences and fierce streaming competition. Recent share price recovery partly reflects mounting sale interest and rising optimism among investors. Chief executive David Zaslav faces mounting scrutiny regarding cancelled projects and contentious strategic decisions, all against the backdrop of an intensifying struggle for global media dominance.