Warner Bros. Discovery ponders sale, rejects Paramount’s offer
Warner Bros. Discovery announced Tuesday that it’s open to a sale. The move follows the company’s announcement that it’s being split into two parts — one for entertainment and streaming, and the other for news and sports.
The split comes as the Warner Bros streaming and movie production business grows, while its cable network unit struggles. The move would unshackle a booming business from a struggling one.
Warner Bros. is the studio behind “Harry Potter” and the DC Comics film franchises. It also owns the news outlet CNN, which has seen a long series of ownership changes.
The broadcast giant has struggled with declining ratings and laid off 6% of its staff in January, a move that the company said would allow it to expand its digital operations.
Unsolicited offers
Since Warner Bros. announced the split, bidders have lined up to offer deals, according to The New York Times. After receiving the unsolicited offers, Warner Bros. Discovery CEO David Zaslav said the company was exploring options.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” David Zaslav, president and CEO of Warner Bros. Discovery, said in a statement.
Zaslav said he received bids for the entire company, as well as just its streaming services. The Warner Bros. Discovery board said it will consider a range of options, including its planned separation, a deal for the whole company or separate transactions for its Warner Bros. or Discovery businesses.
Paramount’s interest in Discovery
Among the interested parties is Paramount Skydance CEO David Ellison. He recently took control of Paramount, spent $150 million to buy Bari Weiss’s Free Press, and then made Weiss editor-in-chief of CBS News.
Reuters reported Paramount made a mostly cash offer of nearly $24 a share, or nearly $60 billion, for the company. However, Warner Bros. Discovery rejected the bid on Tuesday. The company could come back with a new offer, but as of now, that deal is off the table.
A Bank of America research analyst estimated the whole company was worth $30 a share, Reuters reported.
Other interested parties
Comcast is also likely going to examine Warner Bros. assets, Reuters reported. The corporation already owns the media and entertainment conglomerate NBC Universal, which includes NBC, Telemundo, Universal Pictures, USA, Bravo and more.
However, Comcast is currently in the process of doing something similar to what Warner Bros. proposed. It’s spinning off its cable channels into a new company called Versant.
There are reports that Netflix and Amazon are also looking to place bids.
Any sale would likely need federal approval from the Trump administration. European regulators would also need to approve the deal.
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Ella Rae Greene, Editor In Chief
