TLDR
- Warner Bros. Discovery announced it has received unsolicited buyout offers from multiple parties for the entire company and Warner Bros specifically
- The entertainment giant is now reviewing strategic alternatives including a potential sale or continuing with its planned company split
- Reports suggest Skydance-owned Paramount approached Warner with a majority-cash offer in late September
- Warner Bros. Discovery announced plans in June 2024 to split into two separate companies by mid-2026
- The review includes options for selling the entire company or separate transactions for Warner Bros. and Discovery Global businesses
Warner Bros. Discovery announced Tuesday it has received multiple buyout offers and will review its strategic options. The entertainment company said it received unsolicited interest from several parties for both the entire business and Warner Bros. specifically.
Warner Bros. Discovery, Inc., WBD
The company launched a formal review process to evaluate different paths forward. This includes continuing with its previously announced split, selling the entire company, or separate deals for its Warner Bros. and Discovery Global divisions.
Warner Bros. Discovery did not name the parties that expressed interest in a purchase. A company spokesperson declined to provide further details when contacted by the Associated Press.
Reports from the Wall Street Journal indicate Skydance-owned Paramount made an approach in late September. Sources familiar with the matter said Paramount offered a majority-cash deal. Warner Bros. Discovery CEO David Zaslav reportedly rejected these initial offers.
The Associated Press reached out to Paramount for comment on the reports. Paramount has not issued a public statement about any potential bid.
Previous Split Plans
Warner Bros. Discovery announced plans in June to divide into two separate companies. The split would create one entity focused on streaming and studios. This would include HBO, HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios.
The second company would house the cable networks and digital products. This includes CNN, Discovery, TNT Sports, Discovery+ streaming service, and Bleacher Report. The company planned to complete this separation by mid-2026.
The board will now consider whether to proceed with this split or pursue other options. CEO David Zaslav stated the company believed the separation was the best path forward. He added that other market players are now recognizing the value of Warner’s assets.
Review Process
The strategic review will examine all available options for the company. This includes evaluating potential buyers and deal structures. The board aims to determine which path creates the most value.
Warner Bros. Discovery formed in 2022 through the merger of WarnerMedia and Discovery Inc. The combined company owns a large portfolio of entertainment brands and content. Its properties span film studios, television networks, and streaming platforms.
The company continues normal operations during the review process. No timeline was provided for when the board will reach a decision. Warner Bros. Discovery stock rose following the announcement of the strategic review.
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