Warner Bros. Discovery Up for Grabs as Media Titans Circle

So, this got real: Warner Bros. Discovery, the home of DC Studios, just put up the corporate equivalent of a Now Taking Offers sign. The board says it is formally reviewing what to do next, which is the first time they’ve basically admitted they’re open to selling all or parts of the company.

Wait, didn’t someone already try to buy them?

Yep. Earlier this month, reports said David Ellison (yes, the one tied up in all the recent Paramount deal chatter) floated a $20-per-share offer for Warner Bros. That got shot down at the time. But now, WBD is entertaining more of that kind of attention.

Who’s circling?

The board says it has gotten unsolicited interest from multiple parties. Two names floating around: Comcast and Netflix. Nothing close to a done deal, just early interest.

What could actually happen?

The board kicked off a review of so-called strategic alternatives to maximize shareholder value. Translation: everything is on the table. Here’s what that could mean in plain English:

• Stick with the already signaled split-and-spin plan, carving the company into two separate media businesses: Warner Bros. and Discovery Global (think the kind of corporate restructuring play you’ve seen elsewhere in the industry).
• Sell the whole company in one go.
• Sell pieces instead, like Warner Bros. by itself and/or Discovery Global by itself.
• Do a hybrid: structure things so Warner Bros. merges with another company while Discovery Global gets spun off to current WBD shareholders.

The official line from Zaslav

"We continue to make important strides to position our business to succeed in today’s evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and scaling HBO Max globally. We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward. It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets."

How long will this take?

There’s no deadline. The review runs as long as it needs to, which means we’re in hurry-up-and-wait mode.

The bottom line: Warner Bros. Discovery is officially hearing offers and weighing everything from a clean split to a full sale. Comcast and Netflix are kicking the tires, but we’re a long way from signatures on anything. If you care about DC or the broader Warner Bros. slate (and the Max library), this is one to watch.