Netflix Reportedly Eyes Warner Bros. in Game-Changing Deal

Netflix might be looking to buy Warner Bros., according to a new report, and that could completely shake up Hollywood.

Earlier this week, it was reported that Paramount CEO David Ellison was preparing what one source described as a “presumptive all-cash bid for Warner Bros. Discovery.” Now, Puck’s Dylan Byers says that Netflix could also be joining the race.

Byers wrote that “a well-placed Hollywood source called to suggest […] that Netflix was also considering a bid for David Zaslav’s assets.”

Byers admitted that this idea once sounded far-fetched, but explained that Ellison’s ambitious move has sped up the race for Hollywood’s biggest studios. “Ellison’s seemingly limitless cash and ambition have accelerated Hollywood’s consolidation process, and his decision to bid for all of WBD now—in an attempt to preempt potential rivals—is forcing nearly everyone to dust off their models,” Byers said.

The timing of all this is interesting because Warner Bros. has had one of its best years at the box office. Movies like Barbie, Superman, Sinners, and Weapons have kept the studio at the center of pop culture.

Even Wells Fargo analyst Steven Cahall, however, doesn’t think Warner Bros. Discovery stock will climb much higher. He told Puck that “he does not expect WBD stock price to move much beyond $19 a share” and added that “neither Apple nor Amazon will go for all of WBD.”

The idea of Netflix taking over Warner Bros. raises a lot of questions. Warner Bros. has been around since 1923 and is behind some of the most iconic films ever made. Why would a legendary studio that just had a historic summer at the movies sell to a company that mainly cares about streaming?

Streaming might make movies easier to find, but it’s hard for a streaming release to leave a cultural mark. People are still talking about Barbie, Superman, and even flops like Furiosa. On the other hand, when was the last time you heard anyone mention The Gray Man, Red Notice, or The Electric State?

If Netflix did take over, it would instantly control the DC Universe, Harry Potter, The Lord of the Rings, Mad Max, and dozens of other valuable franchises.

Still, Paramount might be closer to sealing the deal. CNBC’s David Faber is reporting that Paramount is offering between $22 and $24 a share to buy Warner Bros. Discovery outright.

That would mean a huge payday for WBD’s CEO David Zaslav. The question now is whether he will take the money or decide that one of Hollywood’s oldest and most respected studios should keep standing on its own.

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