Warner Bros. Discovery has begun reviewing first-round acquisition offers as the company explores a potential sale, either in full or in parts, according to Variety.
The bids, submitted on Thursday (Nov. 20), came from Paramount Skydance, Comcast and Netflix. All three companies sent nonbinding proposals ahead of the deadline, though it’s unclear if additional parties also expressed interest. All participants signed NDAs, as is standard for such processes.
Last month, Warner Bros. Discovery confirmed it had received inbound M&A interest from “multiple parties” and launched a formal review. The board plans to assess the initial offers before Thanksgiving and determine next steps by the end of 2025.
Paramount Skydance, led by David Ellison, is known to have submitted a full buyout proposal. Its latest bid is believed to be close to Ellison’s earlier $23.50/share offer, a deal the WBD board previously rejected. Backed by the Ellison family and RedBird Capital, the proposal includes acquiring all of WBD.
WBD is also open to bids that would split the company’s assets, selling the Warner Bros. studio and HBO Max separately from the Discovery Global cable portfolio. This mirrors the company’s existing plan to divide into two entities by April 2026.
Netflix and Comcast are primarily targeting the Warner Bros. studio and streaming operations, with no interest in the cable networks. Netflix, in particular, sees value in the Warner Bros. library and production capacity, though any move to acquire HBO Max raises potential antitrust concerns.
Meanwhile, amendments to CEO David Zaslav’s employment agreement last week ensure his stock options remain intact in the event of a sale.
Still, Warner Bros. Discovery may ultimately choose not to sell. The company could instead proceed with its previously outlined split, creating a standalone Warner Bros. studio and streaming business, with Discovery Global retaining most of the current debt and keeping up to a 20% stake in the new entity.
