Warner Bros. Discovery said on Tuesday that its board has launched a formal review of strategic alternatives after receiving unsolicited interest from multiple parties, opening the possibility that the company or parts of it could be sold.
In a statement, the company said it will evaluate a range of options intended to “maximize shareholder value,” while continuing to advance a previously announced plan to separate Warner Bros. (the studio and streaming assets) from Discovery Global (the cable networks).
The disclosure follows media reports that at least one significant offer was made and rebuffed.
According to Reuters, the board turned down a near-$60 billion approach led by Paramount Skydance and had earlier rejected lower bids. Warner Bros.
Discovery’s assets include major film and television franchises as well as news and streaming businesses, and industry observers say potential suitors could include other streamers and media conglomerates that have been refreshing their content portfolios.
The company has substantial debt on its balance sheet, a factor analysts say would shape any transaction.
Market reaction was swift. Shares in Warner Bros. Discovery rose sharply on the news as investors priced in the prospect of a strategic change or outright sale.
Analysts cautioned that a sale of the entire company would be complex and likely invite regulatory scrutiny, particularly around high-profile news and entertainment assets.
News organizations and trade publications reported that names mentioned as potential bidders include both legacy media companies and deep-pocketed technology platforms; however, the company emphasized that the process is in an early stage and there is no certainty any transaction will occur.
Legal and antitrust experts have noted that any deal involving sizeable news outlets or major studio libraries would prompt detailed review by regulators.
Warner Bros. Discovery was formed through the 2022 merger of WarnerMedia and Discovery Inc. It has since pursued cost reductions and strategic realignments while carrying a significant debt burden—moves that executives have said were aimed at stabilizing the business and increasing flexibility.
The board’s review is expected to include consideration of selling the company in whole, divesting one of its segments, or altering the planned separation to facilitate different combinations of assets. Company officials have not provided a timetable for the review and said they have retained advisers to assist in the process.
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