Warner Bros. Discovery starts strategic review following unsolicited acquisition interest

Warner Bros. Discovery (WBD) said it has begun a formal review of ‘strategic alternatives’ after receiving unsolicited interest from multiple parties, a process that could include a sale of the entire company or separate deals for its Warner Bros. studio and Discovery Global cable assets. 

The disclosure sent WBD shares up roughly 9–11% intraday on Tuesday.

“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. We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward," said David Zaslav, President and CEO of Warner Bros. Discovery in a statement. 

Zaslav added, "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."

"Our decision to initiate this review underscores the Board's commitment to considering all opportunities to determine the best value for our shareholders," added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. 

"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."

The review follows reports that Paramount Skydance, led by David Ellison, made a mostly cash offer near $24 per share that WBD’s board rejected; earlier chatter referenced an initial approach around $20 per share that was also deemed too low. Neither side has commented publicly on specific bids. 

WBD, created through the 2022 WarnerMedia–Discovery merger, has been contending with high leverage and a streaming market in flux; any deal would come with antitrust scrutiny and would reshape the studio–streaming landscape around franchises like Harry Potter, DC, and Looney Tunes. Recent coverage pegs debt at $35B, with analysts noting the strategic logic and complexity  of any buyer absorbing WBD’s scale.