Warner Bros. Discovery Explores Strategic Options Amid Acquisition Interest
Warner Bros. Discovery (WBD) has announced that it is currently evaluating "strategic alternatives" following unsolicited acquisition interest from multiple parties regarding both the entire company and its standalone Warner Bros. streaming and studio division. This update was shared by the media conglomerate on Tuesday.
Although WBD did not disclose the names of the companies that have shown interest in a merger or acquisition, the news follows Paramount Skydance’s recent efforts, led by Chairman and CEO David Ellison, to secure a significant deal to acquire Warner Bros. Discovery in its entirety. Reports indicate that WBD turned down a $20-per-share offer from Paramount Skydance, deeming it too low.
In addition to reviewing potential acquisition offers, Warner Bros. Discovery is moving forward with its planned separation of Warner Bros. from Discovery Global, which is anticipated to be finalized by April 2026. As part of this strategic review, the WBD board is committed to maximizing shareholder value by exploring a variety of options, including the sale of the entire company or separate transactions for its Warner Bros. and Discovery Global businesses.
The review may also consider alternative structures that could facilitate a merger of Warner Bros. with a third-party buyer while simultaneously spinning off Discovery Global to shareholders. David Zaslav, President and CEO of Warner Bros. Discovery, emphasized the importance of this initiative, stating, "We are making significant progress to position our business for success in the evolving media landscape. The growing recognition of our portfolio’s value is evident, prompting us to undertake a thorough review of strategic alternatives to fully unlock our assets’ potential."
Samuel A. Di Piazza Jr., Chairman of the Warner Bros. Discovery board, echoed this sentiment, stating, "Our decision to initiate this review reflects our commitment to exploring all opportunities to enhance shareholder value. We firmly believe that our planned separation into two distinct, leading media companies will generate compelling value. However, we recognize the need to broaden our scope for the benefit of our shareholders."
WBD has clarified that there is no set deadline for concluding the review of strategic alternatives. Apart from the ongoing separation process, which is on track for completion in April 2026, the company noted that there is no guarantee that this review will lead to a transaction or any other specific outcome.
Furthermore, Warner Bros. Discovery stated that it does not plan to provide additional updates about the review of strategic alternatives unless the board approves a specific transaction or finds further disclosures necessary. The company has enlisted Allen & Company, J.P. Morgan, and Evercore as financial advisers, while Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
Stay tuned for more updates as Warner Bros. Discovery navigates this crucial phase in its corporate strategy.
