A new report reveals that streaming giant Netflix is considering placing a bid to buy Warner Bros. This news comes shortly after reports surfaced that Paramount was also looking to buy the studio behind Sinners, Weapons, and Superman this year alone.

After Paramount CEO David Ellison’s “presumptive all-cash bid for Warner Bros. Discovery,” Puck‘s Dylan Byers has followed up to reveal that “a well-placed Hollywood source called to suggest […] that Netflix was also considering a bid for David Zaslav’s [WBD CEO and president] ᴀssets.“

Byers acknowledges that this scenario was once “implausible,” but that “Ellison’s seemingly limitless cash and ambition have accelerated Hollywood’s consolidation process, and his decision to bid for all of WBD now—in an attempt to preempt potential rivals—is forcing nearly everyone to dust off their models.“

These potential bids are coming after Warner Bros.’ historic summer with a streak of successful movies at the box office. However, Puck reports that Steven Cahall of Wells Fargo “does not expect WBD stock price to move much beyond $19 a share” and that “neither Apple nor Amazon will go for all of WBD.“

Thinking along the lines that Netflix would be interested only in Warner Bros.’ studio and streaming operations, Byers says: “[…] as I discussed on Sunday, Zaz would need to convince his board and WBD shareholders that there would be more value coming from the split than from the Ellisons—that two in the bush is worth more than a bird in hand.“

What Netflix Buying Warner Bros. Could Mean For Hollywood

As far as what Paramount’s possibly buying Warner Bros. means, the merging of two of Hollywood’s oldest studios could result in a powerful new insтιтution in the industry. Ellison seemingly wants to go all in on this idea, as his goal is to buy all of Warner Bros.’ ᴀssets, including games, comics, and more. Netflix’s offer might mean splitting up parts of the company.

But Netflix’s entering the conversation makes this appear to be a debate between the old entertainment industry and the new. While Paramount and Warner Bros. have adapted to the streaming age, Netflix launched this era. Thus, whether Netflix or Paramount ends up buying Warner Bros. and how lucrative that decision turns out to be could shape the future of Hollywood.

Our Take On Netflix’s Entering A Bidding War For Warner Bros.

Byers also says that “the whispers, themselves, are indicative of this feverish new era of M&A activity, catalyzed in large part by Ellison’s entry into the space.” With sources that NBCUniversal and Comcast also felt compelled to “[run] the numbers on WBD,” major brands in Hollywood seem to believe that such takeovers and consolidations are necessary to remain relevant.

This is understandable, given how many ᴀssets Disney has managed to claim in the past two decades. But it also results in the overall makeup of Hollywood being more stratified, if everything fell under one of a handful of corporate umbrellas. Given how Warner Bros. has produced some of the best original movies in recent history, a takeover would hopefully not disrupt the art.