Netflix Inc. (NFLX) is once again exploring a bid for Warner Bros. Discovery (WBD), according to a Reuters report. The report said Netflix has hired Moelis & Co. as its financial adviser and now has access to Warner’s financial data to review a possible offer.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Following the report, Warner Bros. shares gained nearly 4% in after-hours trading, while Netflix added around 3%, buoyed by news of its 10-for-1 stock split.
Warner Bros. Still Reviewing Options
Warner Bros. confirmed on October 21 that it is considering several options, including a sale of its studio and streaming businesses. The company owns the Warner Bros. film and TV studios, HBO Max, and several cable TV networks.
Since then, reports have pointed to multiple bidders, including Comcast (CMCSA) and Paramount Skydance Corp., led by David Ellison. Paramount has already made three bids, but all were rejected for being too low.
Netflix’s renewed interest shows how valuable Warner’s content library remains. A deal would give Netflix control of major franchises like Harry Potter, DC Comics, and Game of Thrones, strengthening its position in global streaming.
Netflix Eyes Content Growth
Netflix co-CEO Ted Sarandos said earlier this month that the company doesn’t need acquisitions to grow but will consider opportunities that add strong content. He also said Netflix has no plans to buy cable networks and will focus its spending on streaming and technology.
If Netflix moves ahead with a bid, the deal could strengthen its edge in the streaming market and give Warner Bros. a much-needed lift. But for now, no formal offer has been made, and talks remain at an early stage.
Is NFLX Stock a Buy?
Netflix stock has a consensus Moderate Buy rating among 31 Wall Street analysts. That rating is based on 24 Buy, six Hold, and one Sell recommendations issued in the last three months. The average NFLX price target of $1,402.19 implies 28.76% upside from current levels.
