Warner Bros. explores sale amid Paramount bids

What happened

Warner Bros. Discovery said Tuesday it was fielding “unsolicited interest” from “multiple parties” and had initiated a “review of strategic alternatives to maximize shareholder value.”

The announcement was the “first acknowledgement of a (metaphorical) ‘For Sale’ sign hanging from the iconic WB water tower,” The Hollywood Reporter said.

Who said what

The media giant, home to iconic brands like HBO and DC Studios, said earlier this year it planned to split into two separate companies, one focused on streaming and studios and the other on cable. But “it’s also been fielding takeout interest from the newly merged Paramount Skydance,” said CNBC. “Netflix and Comcast are among the interested parties,” too, but it is “unclear how serious” that interest might be. Warner Bros. Discovery shares rose 11% following Tuesday’s announcement.

A purchase of WBD by the Larry Ellison–backed Paramount Skydance “would place CNN and CBS, two legacy news brands, under the same roof,” The Washington Post said. A merger that big, The Associated Press said, “could attract antitrust scrutiny — but like other recent mega-mergers and proposed transactions, could find success under the Trump administration.” WBD earlier this week rejected a second takeover bid from Paramount, which had been trying to “pre-empt a potential bidding war” for WBD’s studio and streaming unit, The Wall Street Journal said.

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What next?

Despite setting off a “media free-for-all,” WBD is “dual-tracking,” preparing for its planned split next year while entertaining its “come-and-get-it pitch” to rivals, Semafor said. CEO David Zaslav “has told associates that he wanted to proceed with the split,” the Journal said.