Warner Bros. Discovery Inc. has announced that it is considering a potential sale following multiple unsolicited acquisition interests. Sources indicate that companies such as
In a statement released on Tuesday, Warner Bros. Discovery's board will assess various options, including a planned spinoff before mid-2026, a complete sale, or the separate sale of its Warner Bros. and Discovery Global divisions.
“Our strategic options review has been initiated to determine the best path to unlock the full value of our assets following multiple interests,” stated CEO David Zaslav. The company refused to disclose which companies have expressed interest.
Warner Bros. Discovery's stock price surged by 12% on Tuesday in New York. Since rumors emerged last month about Paramount's interest in acquiring Warner Bros. Discovery, the stock has risen from $12 to approximately $20.
Traditional media companies are grappling with intensified online competition, and Warner Bros. has been sold twice in the past decade. Zaslav had previously pushed for the merger of Discovery and Warner Bros. in a bid to create a competitor to Netflix, but this strategy has not borne fruit. A sale of all or part of the company could reshape Hollywood and the media industry, potentially driving consolidation among major production companies and leading to mergers or exits of certain streaming services.
Sources also reveal that Paramount has engaged in discussions with private equity firm Apollo Global Management Inc. regarding the acquisition of Warner Bros.
Analysts frequently mention that large tech firms like Netflix and Apple may be interested in acquiring assets from Warner Bros. Discovery. However, Apple’s Senior Vice President Eddy Cue recently largely dismissed the possibility of a deal on the podcast “The Town.” “I never say never, but we are not actively considering acquisitions of any size at this time,” he stated.
A source close to the matter disclosed that Netflix Co-CEO Ted Sarandos is interested in Warner Bros. Discovery's production facilities, extensive content library, and film production base. However, Netflix is not interested in owning a television network.
According to unnamed sources discussing non-public negotiations, NBC Universal's parent company Comcast is also contemplating interest but has yet to make a formal offer. A Comcast spokesperson declined to comment on bidding for Warner Bros. Discovery.
Warner Bros. Discovery remains confident that the planned spinoff of its cable and production businesses “will create considerable value,” stated Chairman Samuel Di Piazza. “Nevertheless, we believe that taking these actions to expand is in the best interest of our shareholders.”
The company indicated that there is no specific deadline or timetable for the strategic review process. Allen & Co., JPMorgan, and Evercore are serving as financial advisors for Warner Bros. Discovery.