WASHINGTON : Netflix, the world’s largest streaming platform with more than 280 million subscribers, has taken a decisive step toward expanding its entertainment empire. According to sources, the company is securing tens of billions of dollars in interim loans to fund the potential acquisition, which would mark its boldest strategic move since entering streaming.
Warner Bros. Discovery, owner of HBO, CNN and Warner Bros. Studios, officially put itself up for sale in October after shelving plans to split the company into two divisions. The media giant, burdened by heavy debt, received several unsolicited offers that pushed its board to open a formal sale process. The company’s stock closed at $23.87 on Monday, giving it a market capitalization of about $59 billion, though it is seeking $30 per share, a figure chairman emeritus John Malone has called “possible.”
Sources say Netflix is primarily interested in acquiring Warner Bros. Studios and HBO Max, but not the traditional cable networks, which include linear TV channels broadcasting via satellite or cable rather than online platforms.
The competition is intense. Paramount Skydance has submitted the most complex funding proposal, backed by Oracle founder Larry Ellison’s family, debt financing from Apollo Global Management, and investments from Middle Eastern funds. Comcast, parent company of NBCUniversal, is also bidding, reportedly targeting the studio and streaming divisions much like Netflix.
All bids submitted are binding, giving the WBD board the ability to approve a deal swiftly should it meet the company’s objectives.
However, the prospect of Netflix taking over one of Hollywood’s most iconic studios has caused unrest in the creative community. Multiple top filmmakers have expressed concern, with director James Cameron warning that handing Warner Bros. to Netflix would be a “disaster,” citing fears the streamer may further reduce traditional theatrical releases.