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Warner Bros. Discovery Launches Board Review After Unsolicited Takeover Interest

The company cites debt pressures alongside industry consolidation as it weighs a sale, asset deals or a previously planned split without setting a timetable.

Overview

  • WBD said its board has begun a formal review of strategic alternatives following approaches for both the entire company and the Warner Bros. studios/streaming unit.
  • Reported suitors include Netflix, Comcast and Paramount/Skydance, with an initial mostly-cash proposal from Paramount/Skydance around $20 per share described as rejected.
  • Options under consideration include selling the whole company, separate transactions for Warner Bros. or Discovery Global, an alternative separation structure, or completing the previously announced split into two public companies.
  • Shares rose roughly 10% to 11% after the announcement, reflecting investor optimism about potential transactions and value realization.
  • Advisers Allen & Co, JPMorgan and Evercore are engaged for the process, which executives said has no deadline and could take weeks or months amid financing and regulatory scrutiny.