Warner Bros. Discovery Just Got a Boost and Buyers Are Circling

Investors didn’t see it coming, but Warner Bros. Discovery has just begun a new chapter.

The media giant was long seen as a turnaround story based on streaming and studio expansion. Now, he’s at the center of what could be the biggest entertainment shakeup of the year.

Many entertainment conglomerates, including Comcast, Paramount Global, and possibly even Netflix, are interested in acquiring WBD. All of this action means the anticipated split of WBD into something much more exciting: a full-fledged acquisition watch.

At the same time, Bank of America analysts maintain their positive outlook. They reiterated their buy rating and $24 price target in a letter to clients, saying the strategy review was an important factor.

Analysts commented on the company’s strategy to separate Studio & Streaming from Global Networks:

The proposed spin-off, scheduled for April 2026, was expected to unlock value by allowing the fastest-growing parts of the business to shine on their own. Now it could be laying the groundwork for a bidding battle.

Warner Bros. Discovery’s content empire spans streaming, studios and global networks.Kevin Dietsch/Getty Images

WBD’s original intention was to separate Warner Bros. (Studios and Streaming) from Discovery Global (Linear Networks) by April 2026. This was supposed to allow each business to shine on its own and unlock value.

BofA’s call highlighted that, taken as a whole, the studio and streaming businesses are worth far more than the company’s shrinking linear networks.

More broadcasts:

But what started as a simple division now appears to be an auction. WBD CEO David Zaslav reportedly met with Comcast’s Brian Roberts to discuss strategic possibilities and had full access to internal data rooms.

Paramount has already submitted early proposals, while The New York Post reports that Roberts recently visited Saudi Arabia to seek support from the kingdom’s sovereign wealth fund.

This type of interest means one thing: big names want to get into WBD assets.

WBD’s third-quarter results reflected a tale of two companies. Theatrical revenue increased 74% year-over-year, helping studios increase revenue 23% (excluding FX).

At the same time, linear advertising declined 20% as viewership in the United States plummeted 26%. This isn’t a new story for cable networks, but it makes the argument for the split stronger than ever.

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BofA slightly raised its 2026 adjusted EBITDA outlook to $8.995 billion, explaining that gaming, library licensing and consumer goods will contribute to the company’s growth. The company believes that success at the segment level, rather than combined results, can now determine the direction of the stock.

That theory could already be turning out to be true. The stock has once again attracted significant attention from institutional investors, particularly Penserra Capital, which has recently increased its holdings of WBD shares.

Analysts believe that even if Comcast or Paramount don’t buy sections of WBD, the company still has value.

Bank of America noted several factors that may impact the stock’s rating in 2026, including easier comparisons, an increase in advertising revenue, DTC growth and the planned split, which would unlock value.

The first plan to separate was a brave move. However, if WBD’s Studio and Streaming departments gain new momentum and big media companies start to take notice, this could become something bigger.

The question today is not whether the WBD will split. It’s who gets there first.

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This story was originally published by TheStreet on November 13, 2025, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.