Warner Bros. Discovery is reviewing “strategic alternatives” in light of “unsolicited interest” it has received from multiple parties for both the entire company and the standalone Warner Bros. streaming and studios entity, the media conglomerate said Tuesday.
WBD didn’t say which companies have made M&A overtures. But the announcement comes after Paramount Skydance, headed by chairman and CEO David Ellison, has been pursuing a major deal to acquire Warner Bros. Discovery in its entirety. In recent weeks, WBD reportedly rejected Paramount Skydance’s $20-per-share offer as too low.
On the Warner Bros. Discovery announcement, the company’s stock jumped more than 8% in early trading to nearly $20 per share.
Warner Bros. Discovery “continues to advance its previously announced separation of Warner Bros. and Discovery Global,” currently targeted to be completed by April 2026. At the same time, the board announced it has initiated a review of strategic alternatives “to maximize shareholder value.” Through this process, the Warner Bros. Discovery board will evaluate a broad range of strategic options, which include the sale of the entire company, or separate transactions for its Warner Bros. and/or Discovery Global businesses, it said.
As part of the review, the company will also consider an alternative separation structure that would enable a merger of Warner Bros. with a third-party acquirer alongside a spin-off of Discovery Global to shareholders, it said.
“We continue to make important strides to position our business to succeed in today’s evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and scaling HBO Max globally,” David Zaslav, president and CEO of Warner Bros. Discovery, said in a statement.
Zaslav continued, “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”
Samuel A. Di Piazza Jr., chairman of the Warner Bros. Discovery board, said in a statement: “Our decision to initiate this review underscores the board’s commitment to considering all opportunities to determine the best value for our shareholders. We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
WBD said there is no deadline or “definitive timetable” set for completion of the strategic alternatives review process. Other than the separation transaction that is already underway, which the company has said it targeted to be completed in April 2026, “there can be no assurance that this process will result in the company pursuing a transaction or other outcome,” it said.
In its announcement, Warner Bros. Discovery said it does not intend to make any further announcements regarding the review of strategic alternatives “unless and until the board approves a specific transaction or otherwise determines further disclosure is appropriate or necessary.”
Allen & Company, J.P. Morgan and Evercore are serving as financial advisers to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
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