After weeks of speculation about a possible bid by Paramount, Warner Bros. Discovery reported it has received unsolicited acquisition bids from “multiple parties” and said it has “initiated a review of strategic alternatives to maximize shareholder value,” a move that could lead to the entire company or certain assets being sold.
The company stressed, though, that it continues to work on a previously announced separation into two distinct companies—one, Warner Bros., which would include its studio and streaming assets plus HBO, and a second, Discovery Global, which would house its linear cable networks.
Potential suitors for all or part of the company include Paramount, Comcast NBCUniversal and some major tech companies like Amazon or Apple. Netflix co-CEO Greg Peters recently said a bid for the company was unlikely.
WBD has struggled for years with the massive debts left over from the deal in which Discovery acquired WarnerMedia, then part of AT&T.
In a statement, WBD President and CEO David Zaslav said: “We continue to make important strides to position our business to succeed in today's evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and scaling HBO Max globally. We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward.
"It's no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Zaslav added. “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets."
As part of the review, WBD said it will evaluate a broad range of strategic options, which will include continuing to advance the company’s planned separation to completion by mid-2026; a transaction involving the entire company; or separate transactions for its Warner Bros. and/or Discovery Global businesses. As part of the review, it also said it will consider an alternative separation structure that would enable a merger of Warner Bros. and a spinoff of Discovery Global to its shareholders.
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” WBD chairman Samuel A. Di Piazza Jr. said. “We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
