Overview
- Warner Bros. Discovery said its board launched a review of strategic alternatives after receiving unsolicited interest from multiple parties for all or parts of the company.
- The company recently turned down a mostly cash offer from Paramount Skydance valued at nearly $24 per share, following earlier reports of a rejected approach around $20.
- Options under evaluation include a full-company sale, separate deals for the Warner Bros. and Discovery Global units, completing the planned separation, or an alternative structure combining Warner Bros. with a third party.
- Shares rose roughly 8% to 11% on the announcement, as reporting identified Comcast and Netflix among potential suitors for some assets.
- The process has no set deadline, and any transaction would need to account for Warner Bros. Discovery’s heavy debt load from the 2022 merger and differing views on valuation.