Warner Bros. Discovery is reviewing “strategic alternatives” in light of the “unsolicited interest” it has received from multiple parties, both for the company as a whole and for standalone streaming and studio entity Warner Bros., the media conglomerate said Tuesday.
WBD did not specify which companies had made M&A proposals. But the announcement comes after Paramount Skydance, led by Chairman and CEO David Ellison, reached a major deal to acquire all of Warner Bros. Discovery. In recent weeks, WBD reportedly rejected Paramount Skydance’s $20 per share offer as too low.
When Warner Bros. announced. Discovery, the company’s shares jumped more than 8% in early trading to nearly $20 per share.
Warner Bros. Discovery “continues to advance its previously announced separation from Warner Bros. Through this process, the Warner Bros. Board of Directors. Discovery will evaluate a wide range of strategic options, which include the sale of the entire company or separate transactions for its Warner Bros. operations. and/or Discovery Global, he said.
As part of this review, the company will also consider an alternative separation structure that would allow for a Warner Bros. merger. with a third-party buyer as well as a spin-off of Discovery Global with shareholders, he said.
“We continue to make important strides to position our company for success in today’s evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership and growing HBO Max globally,” said David Zaslav, Chairman and CEO of Warner Bros. Discovery, in a press release.
Zaslav continued: “It is not surprising that the significant value of our portfolio is increasingly recognized by other market participants. After receiving interest from several parties, we 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 board of directors of Warner Bros. Discovery, 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 have determined that taking these steps to broaden our scope is in the best interests of shareholders.”
WBD said there is no deadline or “definitive timetable” for completing the strategic alternatives review process. Aside from the separation transaction already underway, which the company has said it aims to complete in April 2026, “there can be no assurance that this process will result in the Company pursuing a transaction or other outcome,” he said.
In its announcement, Warner Bros. Discovery said it does not intend to make further announcements regarding the review of strategic alternatives “unless and until the board of directors approves a specific transaction or determines that further disclosure is appropriate or necessary.”
Allen & Company, JP Morgan and Evercore are financial advisors to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal advisors.
