Warner Bros Discovery (WBD) has asked potential buyers to submit improved acquisition offers by December 1, according to sources familiar with the matter. The parent company of HBO and CNN is seeking higher bids after receiving preliminary proposals from rivals, including Paramount Skydance, Comcast, and Netflix, as it explores strategic options for a sale that could reshape the media landscape.
WBD, which announced last month it was exploring sale options, has received initial buyout bids from the interested parties. After reviewing the improved offers due by the December 1 deadline, WBD may enter a period of exclusive discussions with one of the bidders, sources told Reuters.
The pursuit of WBD, valued at approximately $60 billion after Paramount’s initial offer was rejected, represents another significant move toward consolidation in the media sector, following the recent $8.4 billion merger of Skydance Media and Paramount Global.
- Paramount Skydance’s Offer: Paramount is expected to bid for the entirety of Warner Bros Discovery, including its fading cable television networks. This bid is strongly backed by the studio’s controlling shareholder, billionaire Oracle co-founder Larry Ellison.
- Strategic Impact of Paramount Merger: A potential combination of Paramount and WBD would be transformative, giving the combined entity a 32 percent share of the North American theatrical market (according to Comscore) and strengthening its streaming service by merging HBO Max with Paramount+.
- WBD Stock Surge: The media giant’s stock has already soared 83 percent since Paramount’s intention to bid was reported in September, closing at $22.96 yesterday.
WBD’s board previously rejected Paramount’s mostly cash offer of nearly $24 a share, valuing the company at $60 billion, and publicly announced its plan to evaluate strategic options. This sale process runs parallel to WBD’s previously announced plan to split into two publicly traded companies, separating its studios and streaming business from its global networks.
The final decision on the bids is expected to determine the future structure of the global entertainment and news giant.
Key Highlights:
- Warner Bros Discovery (WBD) has set a deadline of December 1 for potential buyers, including Paramount Skydance, Comcast, and Netflix, to submit improved acquisition offers.
- The sale process follows the rejection of Paramount’s initial $60 billion, $24-per-share offer and the company’s plan to either sell the whole or split its studio/streaming business from its cable networks.
- Paramount Skydance, backed by billionaire Larry Ellison, is the only bidder seeking to acquire all of WBD, aiming to create a media powerhouse with a 32% share of the North American theatrical market.
- WBD’s stock has dramatically increased by 83 percent since the bid interest was first reported, underscoring the high stakes of this potential media industry consolidation.