Warner Bros Discovery (WBD) has confirmed it is reviewing alternatives to its previously announced corporate split, following mounting interest from potential suitors.
The media conglomerate, formed in 2022, is now at the centre of industry speculation as companies including Paramount Skydance and Netflix are reportedly exploring bids.
Originally, WBD planned to divide its operations in 2024. Under that structure:
- Warner Bros would encompass the HBO Max streaming platform, the Warner Bros film studio, and international sports assets.
- Discovery Global would retain the company’s traditional linear TV networks, including CNN and Food Network.
However, in a statement issued to investors on Tuesday, WBD revealed it is now considering “alternative options,” including a potential sale of the entire company or a partial merger involving the Warner Bros division. One scenario could see Warner Bros merging with another media player while Discovery Global is spun off to shareholders.
Netflix’s Potential Interest
Analysts suggest that Netflix may be particularly drawn to WBD’s premium streaming and film assets, while showing less appetite for legacy linear TV channels. This could shape how any future deal is structured.
WBD’s leadership emphasized that the strategic review will also consider maintaining the current course, with the goal of maximizing shareholder value. Work on the original split continues in parallel with the review.
No Immediate Changes for Viewers
For audiences, it’s business as usual. HBO Max remains on track for its UK launch, existing agreements with Sky are proceeding, and WBD is still planning a revamp of its UK free-to-air offerings in 2026—including making TLC available free-to-air with a stronger focus on comedy content.
WBD’s statement in full
While Warner Bros. Discovery (the “Company”) (NASDAQ: WBD) continues to advance its previously announced separation of Warner Bros. and Discovery Global, its Board of Directors today announced it has initiated a review of strategic alternatives to maximize shareholder value, in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.
Through this process, the Warner Bros. Discovery Board will evaluate a broad range of strategic options, which will include continuing to advance the Company’s planned separation to completion by mid-2026, a transaction for the entire company, or separate transactions for its Warner Bros. and/or Discovery Global businesses. As part of the review, the Company will also consider an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders.
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery.
Zaslav added, “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.”
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. “We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
There is no deadline or definitive timetable set for completion of the strategic alternatives review process. Other than the separation transaction that is already underway, there can be no assurance that this process will result in the Company pursuing a transaction or other outcome. Warner Bros. Discovery does not intend to make any further announcements regarding the review of strategic alternatives unless and until the Board approves a specific transaction or otherwise determines further disclosure is appropriate or necessary.
Image: WBD