Netflix considers buying Warner Bros Discovery to have popular franchises

Netflix considers buying Warner Bros Discovery to have popular franchises

THE studies one of the largest acquisitions in its history. The streaming giant has engaged the bank to evaluate a possible purchase of franchise owner like Harry Potter AND Batmanand the service .

According to the agency ReutersNetflix has already had access to the company’s financial information and is analyzing the viability of the business. If successful, the operation would mark a turning point in the strategy of the company, which to date has almost always grown autonomously. And it would expand its dominance in an increasingly concentrated market.

The possibility of an agreement between Netflix and Warner strengthens the survival strategy

The possible agreement between Netflix and Warner Bros Discovery moves a sector in transformation. Faced with declining traditional TV audiences and fierce competition among streaming platforms, large media groups are seeking mergers to gain financial strength and expand the reach of their catalogs.

Netflix’s entry into this game indicates that even market leaders now see consolidation as an inevitable path to sustain growth.

What Netflix wants to buy

Any purchase by Netflix only involves . The streaming giant would be interested franchise manager as Harry Potter AND Batman. And also in the operations of which include the .

Netflix would be interested in film and television studios; and in Warner Bros Discovery’s streaming operations (Image: Walter Cicchetti/Shutterstock)

These areas concentrate the company’s most valuable content — just the kind of assets that can strengthen Netflix’s global catalog and expand its reach across different audiences.

Alreadysuch as CNN, TNT, Food Network and Animal Planet, . CEO Ted Sarandos himself has reinforced this belief of the company preferring to concentrate efforts on digital platforms and on-demand content.

To conduct the trial, Netflix hired the the same person who advised Skydance Media on its purchase of Paramount Global.

According to sources heard Reutersthe company an advanced stage in the analysis of a formal offer.

This movement indicates that the proposal is not yet official, but has already passed the mere detection phase. This is a structured feasibility study, including data on revenue, costs and synergy projections.

In a recent investor presentation, Sarandos said Netflix is ​​“more of a builder than a buyer.” But what does acquisitions analyze? .

The new phase of Warner

THE is going through a period of renovation. The company confirmed this after receiving including one of controlled by David Ellison.

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Warner Bros Discovery evaluates strategic alternatives after receiving unsolicited offers (Image: PJ McDonnell/Shutterstock)

The company’s board is studying two paths: which would separate studios and streaming operations from the TV division, or .

The decision comes in a scenario of and of marked by the decline in traditional television ratings and the slowdown in the growth of streaming platforms.

They are looking for large groups as investors demand profitability and production costs increase.

What Hollywood could lose

While a possible sale of Warner could bring financial gains and operational efficiencies, experts warn of the risks that could arise in the entertainment market.

In an article published on Bloombergthe teacher of New York University (NYU), says that mergers like this .

Person pointing remote control at TV with streaming service open
Mergers like the one being considered between Netflix and Warner could weaken Hollywood’s creative ecosystem, says New York University professor (Image: CeltStudio/Shutterstock)

According to him, the industry depends on the balance between talent, capital and competition. And when a few conglomerates control the production and distribution of content, .

Hardart compares the possible sale of Warner to recent cases, such as mergers AND which resulted .

THE he also spoke out against the operation, classifying it as “”.

The post Netflix is ​​considering purchasing Warner Bros Discovery to make popular franchises appear for the first time on Olhar Digital.

Source: Olhar Digital

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