Warner Bros. Discovery, the media giant encompassing HBO, CNN, and other prominent networks, has announced it is considering a potential sale following the receipt of unsolicited acquisition offers from “multiple parties.”
CEO David Zaslav stated that the board of directors will evaluate available options in light of these bids, aiming to determine the “best path… to unlock the full value of our assets.”
News of the potential sale triggered a surge in the company’s stock price, climbing approximately 11% and setting the stage for a possible bidding war.
Reports indicate that companies such as David Ellison’s Paramount Skydance are among those expressing interest in acquiring Warner Bros. Discovery.
According to Reuters, citing sources familiar with the matter, Warner Bros. Discovery rejected a bid from Paramount on Tuesday that valued the company at nearly $24 per share.
The company has declined to comment on specific formal offers when approached by the BBC.
At the close of trading in New York, Warner Bros. Discovery shares were valued at approximately $20.
The media landscape is undergoing rapid consolidation as companies adapt to the growth of streaming services and the decline of traditional pay-TV audiences and advertising revenue.
Warner Bros. Discovery was formed just three years ago through a merger of Warner Media, formerly part of AT&T, and Discovery, the owner of networks such as Food Network and HGTV.
However, the merger left the company with a significant debt burden and has resulted in financial losses.
Earlier this year, Mr. Zaslav indicated plans to potentially break up the business, separating its streaming operations from its traditional cable networks.
Analysts suggest that the company’s extensive library of content, including franchises like Harry Potter, Lord of the Rings, and Looney Tunes, makes it an appealing target for firms seeking to bolster their online streaming offerings.
However, the value of the cable networks is seen as less clear.
Warner Bros. Discovery board chairman Samuel Dipiazza stated that while the company remains confident in its plan to separate assets, it will now consider other options, including the potential sale of the entire business or individual parts.
The company has not established a timeline for completing its review and noted that the unsolicited offers have pertained to both the entire corporation and Warner Brothers specifically.
The reported interest from Paramount Skydance, occurring just weeks after its own merger, has attracted significant attention, highlighting the ambitions of CEO David Ellison, son of Oracle founder Larry Ellison.
Any potential sale would likely be subject to government review regarding competition and antitrust concerns.
Analysts believe the Paramount bid had a strong chance of regulatory approval, citing the Trump administration’s relatively hands-off approach to mergers.
They also pointed out the Ellison family’s apparent close ties to former President Donald Trump, noting that his administration had approved deals involving their companies, including Skydance’s acquisition of Paramount.
“They got on Trump’s good side to get the Paramount deal closed, so there’s still some of that goodwill that they could use,” stated Brent Penter, associate analyst at Raymond James, shortly after Ellison’s interest was reported. Of other potential buyers, he added, “Not everyone has that goodwill.”
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