Warner Bros. Discovery (WBD) is reportedly exploring strategic options, including a potential sale of the entire company or its individual assets, after receiving unsolicited buyout offers from multiple parties. The entertainment giant's shares surged nearly 11% following the announcement, reflecting heightened market speculation and investor optimism.
This strategic review comes shortly after WBD revealed plans to split into two separate entities by mid-2026. One entity would focus on streaming and film assets, while the other would house TV services and cable networks, including CNN and TNT Sports. According to Warner Bros. Discovery, the board is evaluating a broad range of strategic options, including proceeding with the original separation plan, a sale of the entire company, or separate transactions for Warner Bros. and/or Discovery Global businesses. An alternative separation structure that would enable a merger of Warner Bros. and a spin-off of Discovery Global to its shareholders will also be considered.
Several major players in the media and entertainment industry have expressed interest in acquiring parts or all of Warner Bros. Discovery. Paramount Skydance reportedly made an initial bid for WBD at roughly $20 per share, which was rejected. The offer was revised to $22 and $24 apiece, but CEO David Zaslav is seeking upwards of $30 per share. CNBC reported that Netflix and Comcast are also among the parties interested in buying WBD’s assets.
While neither Netflix nor Comcast has officially confirmed their interest, sources indicate that both companies are exploring potential deals. However, Netflix executives have downplayed any interest in acquiring Warner Bros. Discovery. Co-CEO Ted Sarandos stated, "We have no interest in owning legacy media networks". Analysts also believe a deal with Netflix is unlikely, as the company generally avoids overpaying for acquisitions. Comcast's potential acquisition of WBD could face political and regulatory obstacles.
Several analysts weighed in on the situation. Wells Fargo analysts anticipate an active process to play out publicly now that WBD has disclosed buyout interest from multiple parties. The research firm also noted that Comcast's interest in WBD could be mitigated by political/regulatory obstacles. It views Netflix as a "wildcard" in the bidding saga, and considers offers from Amazon and Apple as possible, yet improbable.
The potential sale of Warner Bros. Discovery marks a significant shift in the media landscape. According to Mike Proulx, VP research director at Forrester, a potential transaction could help scale the company's streamers to better compete with other platforms but consumers could see fewer choices controlled by just a handful of corporate giants.
Warner Bros. Discovery has retained Allen & Company, J.P. Morgan, and Evercore as financial advisors, with Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP serving as legal counsel. The company has stated that there is no deadline or definitive timetable set for completion of the strategic alternatives review process and that there is no assurance that this process will result in the Company pursuing a transaction.
