Warner Bros. Discovery (WBD) is evaluating potential acquisition bids from various parties, indicating an interest in its entire company as well as its standalone streaming and studio operations. This announcement was made on Tuesday, showcasing the company’s consideration of “strategic alternatives.”
Acquisition Interests and Recent Offers
The media giant did not disclose the names of interested buyers. However, it has come to light that Paramount Skydance, led by chairman and CEO David Ellison, has been pursuing a substantial acquisition deal. Recently, WBD rejected a bid from Paramount Skydance valued at $20 per share, deeming it insufficient.
In response to the announcement regarding acquisition talks, Warner Bros. Discovery’s stock experienced a notable increase, rising over 8% in early trading to nearly $20 per share.
Strategic Review and Separation Plans
Warner Bros. Discovery is advancing its planned separation from Discovery Global, which is projected to be completed by April 2026. The company’s board is actively reviewing a wide assortment of strategic options to maximize shareholder value, which may involve:
- The sale of the entire company
- Separate transactions for Warner Bros. and Discovery Global
- Alternative separation structures that could facilitate a merger with an external buyer for Warner Bros.
David Zaslav, the CEO of Warner Bros. Discovery, emphasized the company’s efforts to adapt in the competitive media landscape. He noted the increasing market recognition of the company’s portfolio’s value.
Commitment to Shareholder Value
Samuel A. Di Piazza Jr., the chairman of the board, reinforced the commitment to exploring all potential opportunities for shareholder benefit. He expressed confidence in the planned separation, anticipating it will create significant value.
Notably, there is currently no fixed deadline for completing the strategic review process, and Warner Bros. Discovery has advised that this evaluation might not lead to a transaction.
Advisors and Legal Counsel
To assist with this process, WBD has enlisted financial advisors, including Allen & Company, J.P. Morgan, and Evercore. The legal advisement is being provided by Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP.