Back in June, reports emerged that Warner Bros. was planning a restructuring that would see the company split in two- one company would contain its studio and streaming assets (HBO, Max, Warner Bros. Television & Motion Pictures, and DC Studios) and the other company would house its linear/cable networks (CNN, TNT, Discovery, etc.).
The split is targeted for completion by mid-2026.
Shortly thereafter, the newly merged studio Paramount Skydance (backed by Oracle founder Larry Ellison) emerged as a likely candidate for the purchase of WB's studio and streaming assets. On the heels of that news breaking, stock prices for both companies surged.
Now, it seems there's another contender joining the race, according to Puck- none other than Netflix!
However, fans are somewhat worried about the news, as Netflix is definitely a streaming-first, theatrical release-second kind of film studio, which could lead to DC Studios becoming a streaming-only brand.
The Streaming & Studios side of WBD is estimated to be worth about $65 billion, thanks to IP like the heroes and villains from DC Comics, Harry Potter, The Lord of the Rings, and a host of other smaller franchises.
Backed by Larry Ellison's wealth, Paramount Skydance is expected to put in a full-cash offer, something that reportedly greatly interests WBD CEO David Zaslav.
On the flipside, Netflix has been open about its strategic shift from just having a lot of content to building a library of powerful franchises. Said co-CEO Ted Sarandos previously, "...you need a lot more than just a big hit every once in a while. … It’s not about the single hit. It’s about a steady drumbeat of shows and films – and, soon enough, games – that our members really love and continue to expect from us.”
In a separate interview, Netflix co-founder Reed Hastings described creating a "competitive moat" of powerful IP and franchises- one that prevents subscribers from leaving for other streaming competitors due to loyalty and infatuation with what Netflix has to offer.
In recent years, Netflix has been somewhat struggling to create such powerful IP with original content, making the theory plausible that the streamer might opt to just buy its major franchise instead of building it.
There's also the question of what happens to the current film and television slate at Warner Bros. after an acquisition, particularly with DC Studios. David Zaslav has given James Gunn and Peter Safran free rein to do as they see fit, but that might all change if Gunn and Safran suddenly find themselves answering to a new boss- especially one that prioritizes streaming over theatrical releases.