Warner Bros. Discovery (WBD) has announced it is exploring "strategic alternatives," including a potential full sale of the company, after receiving unsolicited acquisition bids from multiple parties.
The move has sparked immediate market reaction, with WBD shares surging about 10% in morning trading on the Nasdaq. The company emphasized that it remains committed to its previously outlined restructuring but is now weighing buyer interest as a faster path to unlocking shareholder value.
The announcement introduces significant uncertainty for subsidiaries like CNN (news) and Max/HBO (streaming). Analysts suggest that in a sale scenario, these units could be carved out or sold separately, potentially leading to new ownership that prioritizes profitability over traditional journalism or content investment.
For instance, CNN's future could involve cost reductions or integration into a broader news ecosystem, while HBO's prestige content might appeal to tech giants seeking exclusive libraries.
In early 2025, WBD unveiled a major restructuring to split into two independent publicly traded companies by mid-2026:
- Entertainment Company: Focused on studios (Warner Bros.), premium streaming (Max/HBO), and scripted TV production. This entity would aim to compete directly with Netflix and Disney in content creation and distribution.
- Networks Company: Centered on linear TV assets like news (CNN), sports (NBA rights via Turner), and unscripted/reality programming (Discovery Channel). This would resemble a more traditional cable operator, potentially spinning off or partnering for distribution.
The split was intended to separate high-growth streaming from declining linear TV revenues, allowing each to pursue tailored strategies and attract specialized investors. However, execution has been delayed by regulatory hurdles, market volatility, and internal debates over asset allocation.
Bids and Potential BuyersWBD has received "multiple expressions of interest" but hasn't disclosed details.
- Potential Suitors: Netflix, Amazon, and Apple are eyeing the streaming arm (Max/HBO) for its content library, subscriber base (over 100 million globally), and IP like DC Comics and "Game of Thrones."
- Media Peers: Comcast (NBCUniversal owner) could bid for the full company or sports/news assets to bolster Peacock streaming and Olympics rights.
- Others: David Ellison's Skydance remains interested in a combined acquisition, potentially merging with Paramount for scale.
This could ignite a bidding war, with analysts estimating a full-company valuation between $25–$35 billion (based on current market cap of ~$22 billion pre-announcement).