Warner Bros. Discovery opens door to a sale after unsolicited bids

New York: Warner Bros. Discovery said it has begun a formal review of “strategic alternatives” after receiving unsolicited interest from multiple parties, a process that could result in a sale of the entire company or separate transactions for Warner Bros. and Discovery Global. 

The board also left open the option of continuing with its previously announced plan to split into two standalone companies by mid-2026

The announcement lifted WBD shares roughly 9–11%, as investors bet on a deal premium. The company recently rejected a nearly $24 per share approach from Paramount Skydance and noted any buyer would have to take on about $35 billion of WBD debt. 

Chief executive David Zaslav said the review follows outside recognition of the value in WBD’s portfolio and is aimed at “unlocking the full value of our assets.” Chair Samuel A. Di Piazza, Jr. added that while the board still believes the planned separation can create value, widening the scope to include sale options is in shareholders’ best interests. Allen & Co., J.P. Morgan and Evercore are advising; Wachtell and Debevoise are legal counsel.

The move caps a turbulent stretch for the media group, formed in 2022 via AT&T’s $43 billion WarnerMedia–Discovery deal, as legacy cable pressures and streaming economics drive consolidation across Hollywood. 

Reports of outside interest and WBD’s openness to a transaction mark the biggest potential reshaping of a major studio since the merger wave that followed the streaming boom.