Warner Bros. Discovery has confirmed it is now officially considering buyout offers amid reported interest from Paramount Skydance.
While Warner Bros. Discovery said it is still working towards separating into two distinct media companies (Warner Bros. and Discovery) by mid-2026, it had now triggered the acquisition consideration following “unsolicited interest from multiple parties” for the entire company and Warner Bros.
In an investor-focused note issued on Tuesday, October 21, the company said it had initiated a “review of potential alternatives to maximize shareholder value,” and was now evaluating a transaction for the entire company, or separate transactions for its Warner Bros. and/or Discovery Global businesses.
David Zaslav, President and CEO of Warner Bros. Discovery, said: “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.
“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.”
The news comes following reports that Paramount Skydance was preparing an offer to buy the rival studio. The reported bid would be for the entire Warner Brothers Discovery business.
Warner Bros. Discover includes a number of high-profile media brands and entertainment franchises, such as HBO, CNN, Harry Potter, and DC properties such as Superman and Batman. It’s enjoyed big success at the box office this year with DC Studios’ Superman, A Minecraft Movie, and Sinners. 2023’s Barbie made over a billion dollars in theaters.
On the TV and streaming side of things, Warner Bros. has HBO Max, which is home to the likes of The Penguin, Peacemaker, The Sopranos, The Last of Us, The White Lotus, and many other award-winning TV shows. Upcoming shows include IT: Welcome to Derry, and Game of Thrones spinoffs A Knight of the Seven Kingdoms and House of the Dragon Season 3. DC TV show Lanterns is also due out on HBO Max next year.
Warner Bros. also has a significant video game operation that includes the likes of Rocksteady (Suicide Squad: Kill the Justice League), TT Games (LEGO Batman: Legacy of the Dark Knight), NetherRealm (Mortal Kombat), and Avalanche Software (Hogwarts Legacy).
There is no deadline or definitive timetable set for completion of the strategic alternatives review process, Warner Bros. said. “Other than the separation transaction that is already underway, there can be no assurance that this process will result in the Company pursuing a transaction or other outcome,” it insisted.
Warner Bros. Discovery made the announcement at the same time it increased prices across all subscription tiers for HBO Max.
Photo by Mario Tama/Getty Images.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].
