Potential $60B Sale: Warner Bros Discovery Amidst Media Consolidation
Warner Bros. Discovery, the media colossus behind HBO, CNN, and DC Studios, made a public announcement on Tuesday about its exploration of strategic alternatives. These include a potential sale of the entire company, a move that sent shares skyrocketing by over 10% in trading. The company disclosed that it has received “unsolicited interest” from multiple parties for both the complete business and individual divisions.
This announcement signifies a dramatic shift for the $45 billion company. Previously, it had plans to split into two separate entities by mid-2026. One entity would focus on streaming and studios, while the other would concentrate on cable networks and news operations. However, CEO David Zaslav stated that the board will now “evaluate a broad range of strategic options” to maximize shareholder value.
Paramount Skydance, under the leadership of David Ellison, has surfaced as a primary suitor. Reportedly, it has made multiple bids, including a recent offer of $23.50 per share that was turned down by Warner’s board. Other interested parties include Netflix and Comcast, according to sources familiar with the matter. Wall Street analysts estimate that any complete acquisition could exceed $60 billion, factoring in the company’s substantial debt load.
The potential deal emerges as the media industry undergoes massive consolidation. Companies are adapting to changing consumer habits and the rise of streaming services. A successful acquisition would significantly alter Hollywood’s landscape, potentially reducing the number of major studios to just four.
Source: CNBC