On Tuesday, Warner Bros. Discovery announced that it’s available for sale, which prompted its stock to rise over 8% in early trading. This came after the company received “unsolicited interest” from several potential buyers.
This unexpected news is part of a broader strategic review led by CEO David Zaslav, who confirmed that the company is weighing options for selling all or part of its operations.
Warner Bros. Discovery, which owns notable brands like HBO and CNN, is planning to split into two separate entities next year—one focused on streaming and studio assets, and the other on global cable and networks.
In light of the increased acquisition interest, Zaslav mentioned that the company is exploring “all options” to enhance shareholder value.
“We made a significant move to separate our organization into two leading media companies, Warner Bros. and Discovery Global, as we believe this is the best path forward,” Zaslav stated on Tuesday.
He added that there’s growing recognition in the market of the substantial value of their portfolio.
The company is reportedly undergoing a detailed review of strategic options to determine the best ways to maximize the value of its assets.
This announcement has fueled speculation over recent weeks in both Hollywood and Wall Street about a potential formal offer from a range of suitors, including Paramount’s David Ellison and Comcast.
Ellison, whose Skydance Media merged with Paramount Global earlier this summer, has been exploring Warner Bros. Discovery’s assets for the past few months.
It’s said he’s collaborating with financing partners like Apollo Global Management to consider bids ranging between $50 billion and $60 billion.
Sources previously hinted that Ellison might take a more aggressive stance after learning Comcast’s Brian Roberts could soon join the bidding once his company completes a spinoff of its Versant cable assets.
With this restructuring, Comcast would retain NBC, Universal Studios, Peacock, and Xfinity, allowing it a clearer path to pursue major deals. Ellison’s bid is reportedly also backed by his father, Oracle co-founder Larry Ellison, who has a net worth of around $400 billion, potentially lending an edge in the bidding process.
However, it seems the 42-year-old media executive is still contemplating whether to make a formal offer after many months of behind-the-scenes discussions.
Previously, Zaslav had pushed back against Ellison’s initial offer, deeming a $20 per share price “low” and suggesting a figure closer to $30 per share, which aligns with an estimated total sale price of about $60 billion.
The Warner Bros. Discovery president expressed confidence that the studio and streaming division could meet that valuation independently, especially following the recent success of the Max streaming platform and a series of box office successes.
Zaslav’s latest decision also follows weeks of internal restructuring aimed at a planned May 2026 spinoff that would ideally separate the lucrative assets from a debt-heavy cable division.
The company’s burden of $30 billion in debt has impacted its stock, which was around $18 before the uptick on Tuesday.
Analysts at Wells Fargo suggested that Ellison might soon make a public offer, potentially starting around $20 per share.
The Post has sought comments from WBD, Paramount Skydance, and Comcast.
