Warner Bros. Discovery (WBD) announced on Tuesday that it is expanding its business review and is open to selling the company. This news caused its stock to jump about 8% in premarket trading.
Earlier this year, WBD revealed plans to split into two separate companies; one focusing on streaming and studios, and the other on global networks. Recently, the newly merged Paramount Skydance also showed interest in buying WBD.
On Tuesday, the company said it had received “unsolicited interest” from several potential buyers and would now look at all possible options. Still, it plans to continue with the planned separation, the company added.
CEO David Zaslav said in a statement,
“We are working hard to position our business for success in today’s fast-changing media world. By splitting Warner Bros. and Discovery Global, we believe we’re taking the right step forward.”
Zaslav added that it’s no surprise others are recognizing the value of their portfolio. “After receiving interest from multiple parties, we’re now reviewing all strategic options to find the best way to unlock the full value of our assets,” he said.
Sources told Allstocksinfo that Netflix and Comcast are among those showing interest. For any buyer mainly focused on WBD’s studio and streaming divisions, waiting until after the company’s split later this year could bring tax benefits.
Both Paramount and WBD declined to comment further.
Why now?
WBD has struggled financially since the 2022 merger between WarnerMedia and Discovery Inc., which left it with over $40 billion in debt. The company has since worked to cut costs, restructure its content strategy, and focus on strong franchises like Harry Potter and Game of Thrones spinoffs.
Even though WBD has made progress in reducing debt, some investors remain cautious because of its traditional cable business, especially as more viewers shift to streaming.
