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Warner Bros. Discovery (WBD), a US-based entertainment giant, is exploring a potential sale after receiving several expressions of interest from possible buyers, signalling that Paramount Skydance may not be the only contender. The company’s shares surged more than 11% during intraday trading on Tuesday following the announcement. In a statement, WBD has said its board has begun a “review of strategic alternatives”, which could result in a full sale of the company, a continuation of its plan to split into two publicly traded entities, or another restructuring move altogether. Paramount has reportedly shown interest in acquiring WBD ahead of its planned breakup, indicating that a behind-the-scenes bidding race may already be underway. Sources told CNN that WBD’s board rejected an initial offer from Paramount, describing it as a “lowball” proposal from the company’s new CEO, David Ellison. WBD’s current restructuring plan, spearheaded by CEO David Zaslav, involves splitting the company into two units — Warner Bros., which would include HBO Max and the studio business, and Discovery Global, which would oversee CNN and the company’s cable operations. Zaslav believes the two companies could achieve higher valuations independently. However, the company’s latest announcement suggests other possibilities are on the table. According to a CNN report citing two people familiar with the situation, Comcast is also reviewing WBD’s assets, given the company’s openness to a deal. Comcast, Netflix Might Be Interested According to reports, Analysts have speculated that both Comcast and Netflix might be interested in the streaming and studio divisions due to WBD’s extensive portfolio of valuable brands and content. Zaslav, in a statement, said, “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.” In a memo to employees, he added that the process of “evaluating potential interest, conducting due diligence, and assessing next steps will take time, likely over a period of weeks and months,” emphasising that “there’s no set timeline for final decisions.” Among the possibilities under review are the planned split, a potential full-company transaction, separate deals for Warner Bros. and Discovery Global, or an alternative structure that could see Warner Bros. merge while Discovery Global is spun off to shareholders. The development marks a pivotal moment for the media conglomerate, as major industry players circle one of the biggest names in global entertainment. (With inputs from agencies)
