Warner Bros. Discovery (WBD) said Tuesday it has launched “a review of strategic alternatives” following what it said was “unsolicited” interest from multiple parties for both the company as a whole and its Warner Bros. studio division.
As a result, shares rose more than 11% in midday trading.
According to a statement, the media giant said the board will evaluate a variety of options, including completing its planned split into two separate companies, Warner Bros. and Discovery Global, or seeking a sale of all or part of the business.
The separation, first announced earlier this year, remains on track to be completed by mid-2026.
“We continue to take important steps to position our business for success in today’s changing media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and expanding HBO Max globally,” Warner Bros. Discovery CEO David Zaslav said in the statement.
“It is not surprising that the significant value of our portfolio is receiving greater recognition from others in the market,” he added. “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.”
The announcement comes just weeks after reports emerged that Paramount Skydance (PSKY), the David Ellison-backed company that recently completed its acquisition of Paramount, submitted a majority cash offer for the company, a move that analysts said at the time could start a bidding war in Hollywood and reshape the global streaming landscape.
Paramount Skydance has been looking at all of Warner Bros. Discovery’s assets, from HBO and CNN to the Warner Bros. studio, in a bid to increase its scale in streaming and advertising. Analysts have estimated the combination could create a top-five global player with roughly 200 million streaming subscribers and up to $20 billion in annual TV advertising revenue.
Warner Bros. Discovery reportedly rejected multiple offers from Paramount, while Netflix (NFLX) and Comcast (CMCSA) emerged as other potential bidders. Paramount declined to comment when asked about Yahoo Finance’s offers.
Warner Bros. Discovery, Netflix and Comcast did not immediately respond to requests for comment.
The move marks another turn for a company still dealing with the fallout from its 2022 merger between WarnerMedia and Discovery, an alliance that left it with more than $40 billion in debt. The company is under pressure to cut costs amid increased competition from cord-cutting and streaming.
