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Warner Bros. Discovery, the media conglomerate owning HBO, CNN, and film studios, announced on Tuesday (21) it is open to sale negotiations. The decision, made in New York, follows unsolicited proposals from multiple parties interested in either the entire company or the Warner Bros. division alone. The move aims to maximize shareholder value amid a consolidating entertainment industry driven by the shift to streaming platforms.
The company’s shares surged over 10% at the start of trading, reflecting market optimism. Valued at $45 billion as of Monday’s close, the company carries billions in debt, which may impact deal terms. The strategic review does not affect the planned split of its cable networks from its streaming and studio businesses, set for mid-2026.
Key assets attract industry giants
Warner Bros. Discovery’s portfolio includes iconic franchises like Harry Potter, DC Comics, and global sports broadcasting rights. These assets are highly appealing to technology and digital entertainment buyers. The studio division has released recent box-office hits, strengthening its market position.
Recent proposals included an offer from Paramount Skydance at about $20 per share, rejected by the board. Other players, such as Comcast and potential tech giants, have expressed interest in partial or full acquisitions. The company is evaluating options like separate transactions for Warner Bros. or Discovery Global.
History of mergers and restructurings
Warner Bros. Discovery was formed in 2022 from the merger of WarnerMedia, formerly Time Warner, and Discovery Inc. This followed a $85 billion acquisition by AT&T in 2016, which faced an antitrust battle in the U.S. In 2014, a takeover bid by Rupert Murdoch’s News Corp. was withdrawn.
In the 2000s, the former Time Warner spun off cable and magazine businesses to focus on content. These changes aimed to adapt to the decline of linear TV and the rise of competitors like Netflix. The debt accumulated since the 2022 merger pressures the company to unlock value.
The split announced in June separates cable networks, like CNN and TNT, from HBO Max streaming and studios. This structure divides sports rights, with TNT assets in the U.S. going to Discovery Global and U.K. broadcasts to Warner Bros.
Market reactions and options under review
Negotiations drove share gains, with stocks rising up to 12% in morning trading. Analysts see potential for a bidding war over valuable portfolio segments. The board, led by CEO David Zaslav, prioritizes asset unlocking for competitiveness.
- Proceed with the planned split by April 2026, tax-free on capital gains.
- Full company sale, valued at over $45 billion.
- Separate transactions for Warner Bros. or Discovery Global.
- Alternative split structure allowing Warner Bros. merger with Discovery spin-off.
Zaslav emphasized progress in strategic initiatives, like HBO Max’s global expansion and studio leadership. The company has not set a timeline for concluding the review.
Comparisons with recent media moves
Other industry giants adopted similar strategies in 2025. Skydance acquired Paramount, owner of CBS, in a deal strengthening streaming portfolios. Comcast announced in 2024 the spin-off of networks like CNBC and MSNBC into a new entity called Versant.
Under Comcast’s plan, platforms like Peacock and NBC remain with the parent company. These restructurings address the decline in cable viewership, which lost billions in revenue in recent years. Warner Bros. Discovery follows suit by isolating growth units from legacy businesses.
Streaming captured 40% of U.S. video consumption in 2024, accelerating the decline of traditional TV since 2020.
Outlook for franchises and streaming
Warner Bros.’ content library includes rights to The Hunger Games and Looney Tunes, vital for digital expansion. Releases like the new Superman boosted box offices, with 2025 marking the studio’s best year in a decade. HBO Max scales globally, competing with Amazon and Apple.
Any deal must account for the billion-dollar debt, which Discovery Global would assume in the split. The board is evaluating mergers integrating Warner Bros. with new players while preserving operational synergies.
