Warner Bros. Discovery says it’s open to a sale; shares jump 10%

Warner Bros. Discovery announced on Tuesday that it is broadening its strategic review and considering a potential sale, leading to an 8% increase in premarket trading.

Earlier this year, Warner Bros. Discovery revealed plans to divide into two separate entities – one focusing on streaming and studios, and the other on global networks. The company has attracted interest from Paramount Skydance following this announcement.

However, Warner Bros. Discovery has now received “unsolicited interest” from multiple parties and is exploring all options. Despite this, the company is still moving forward with its planned separation.

CEO David Zaslav stated, “We are taking steps to position our business for success in today’s media landscape. The decision to split the company into Warner Bros. and Discovery Global was made to drive industry leadership and global expansion of HBO Max.”

“Following interest from various parties, we are conducting a thorough review of strategic alternatives to unlock the full value of our assets,” Zaslav added.

Sources have mentioned Netflix and Comcast as potential suitors for Warner Bros. Discovery.

The company decided to publicly acknowledge the interest from multiple parties after rejecting bids from Paramount and another company with a higher offer. Paramount’s bid, reportedly above $30 a share, raised concerns among Warner Bros. Discovery board members.

Warner Bros. Discovery has faced financial challenges since the WarnerMedia-Discovery Inc. merger, which resulted in significant debt. Despite efforts to reduce debt and focus on profitable content, investor skepticism remains due to the company’s cable network portfolio.

Stay tuned for updates on this developing story.