Warner Bros Discovery Seeks Full Company Sale, Stock Soars 10%

David Zaslav is seeking a bidding war for Warner Bros. Discovery.

Warner Bros. Discovery said it’s reviewing a potential sale of the company, citing unsolicited interest in the entire entity, even as it continues to pursue a spinoff of its cable assets, which is already underway.

The news, which sent shares soaring more than 10%, follows reports that David Ellison’s Paramount Skydance, with backing from his billionaire father, Oracle’s Larry Ellison, is pursuing a bid for WBD as he builds a media and tech powerhouse.

“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,” said Zaslav, president and CEO of Warner Bros. Discovery, in an announcement. “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,” he added. “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.”

WBD said there’s no deadline or timetable set for completion of the review process and that it may not decide to pursue any transaction at all.

Consolidation in media and entertainment has long been predicted. The rationale is that only a few companies will win the streaming wars, and the biggest have the best chance of success. Many analysts see a tie-up of WBD and Paramount Skydance as inevitable.

Separately, they’re still bit players in streaming, but the rationale is that combined, they could mount a real challenge to Netflix and Disney. Antitrust concerns that might otherwise exist could be mitigated by the fact that Larry Ellison has close ties with President Donald Trump. And the elder Ellison has the money, as one of the world’s richest men.

Other companies such as Netflix and Apple have the means but historically haven’t been buyers of big Hollywood studios, and likely wouldn’t be interested in the cable channels.

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