Count Netflix out on a purchase of Warner Bros. Discovery
Count Netflix out on a purchase of Warner Bros. Discovery
On Wednesday, Netflix’s co-CEO Greg Peters threw cold water on the idea that his company will make any major effort to purchase WBD.
A universe where HBO is owned by Netflix? It’s not looking all that likely. Netflix co-CEO Greg Peters took the stage at the Bloomberg Screentime conference in Los Angeles on Wednesday, and his comments during the course of the appearance left little doubt regarding the company’s thoughts about making a major effort to acquire Warner Bros. Discovery.
Key Details:
- It’s a no from Netflix: Peters repeated an oft-used company line that Netflix has a history as a builder rather than a buyer.
- Ew, David: Current WBD CEO David Zaslav may be trying to amplify reports of Netflix’s interest.
- Paramount’s to lose: It appears that Paramount has the best chance of any firm to acquire WBD.
Speaking at the conference on Wednesday, Peters left little room for doubt as to whether or not Netflix would make a play for WBD. Without naming any names, he explained that the history of big media combinations is littered with failures, and that Netflix still prefers to augment its company from within as opposed to attempting splashy purchases to advance.
“We come from a deep heritage of being builders rather than buyers,” Peters said. “One should have a reasonable amount of skepticism around big media mergers. They don’t have an amazing track record over time.”
When asked point-blank whether the odds of an acquisition were low, Peters replied, “Yeah. Our job is to figure out what is the best way to grow the business. We have to think really carefully about how we invest our capital, our time, and our attention. And if that’s the best way to do it, great. And if it’s not, we should do something else.”
The first reports of Netflix's supposed interest in buying WBD emerged in late September, but they may not have come from a source inside the streaming service. Deadline reported Wednesday that current WBD CEO David Zaslav may be the one trying to drum up additional interest in WBD, in the name of creating a situation in which he’s offered a job title with little work and a cushy paycheck once WBD changes hands.
Knowing Zaslav’s track record, that certainly seems possible. The CEO has been trying to instigate a bidding war for WBD ever since Paramount’s desire to acquire it became public earlier in September. The problem for Zaslav is that Paramount Skydance is now owned by the Ellison family, whose patriarch, Larry Ellison, is one of the wealthiest men on the planet. Other companies like Netflix would have to grapple not only with the idea of outbidding the Ellisons but also with what their vision is for WBD’s cable channels, how to pay down its huge debt load, and other such headaches.
There may still be other companies that decide to come after WBD, either before it splits itself into two firms or after. But as of now, Paramount seems the clear leader, and it doesn’t appear Netflix will be making any major efforts to go after the company.
Netflix
Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”