Warner Bros. Discovery (“the Company”) has begun a comprehensive review of strategic alternatives as it continues work on its previously announced plan to separate into two independent media companies, Warner Bros. and Discovery Global. The decision follows unsolicited interest from multiple parties seeking to acquire either the entire company or Warner Bros. specifically, prompting the Board of Directors to expand the scope of its evaluation, AVclub reported
In its announcement, the Company confirmed that the review will consider a wide range of potential outcomes. These include completing the planned separation by mid-2026, pursuing a sale of the whole company, or executing separate transactions involving Warner Bros. or Discovery Global. The Board will also examine an alternative structure that would allow Warner Bros. to merge with another entity while Discovery Global is spun off to shareholders.
President and CEO David Zaslav emphasized the progress Warner Bros. Discovery has made despite a rapidly evolving media environment. He noted that the Company’s strategy to separate into two distinct media businesses was undertaken because leadership believed it offered the strongest path forward. According to Zaslav, the interest expressed by outside parties reflects a growing recognition of the value embedded in the Company’s portfolio. He stated that the new review is intended to identify the best means of unlocking that value.
Board Chair Samuel A. Di Piazza, Jr. added that the review reflects the Board’s commitment to acting in the best interests of shareholders. While he reaffirmed the Board’s belief that the planned separation would deliver significant value, he explained that expanding the process to consider all potential opportunities is prudent given recent developments in the market.
The Company noted that no deadline has been set for completion of the review and cautioned that there is no guarantee it will lead to a transaction or any change in strategic direction. Aside from updates related to the separation already underway, Warner Bros. Discovery does not intend to provide further public comment unless a specific transaction is approved or additional disclosures become necessary. Allen & Company, J.P. Morgan and Evercore are serving as financial advisors, while Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP are providing legal counsel.
Reuters has reported that Comcast, Paramount Skydance and Netflix have explored bids for the whole of Warner Bros Discovery or in parts.
As speculation surrounding potential buyers intensifies, the possibility of Netflix acquiring Warner Bros. Discovery has begun to attract political scrutiny. Representative Darrell Issa of California has expressed concern over the antitrust implications of such a deal. In a letter to the White House and the Department of Justice’s Antitrust Division, Issa warned that combining Netflix’s dominant streaming platform with Warner Bros.’s HBO Max could raise Netflix’s market share above the 30 percent threshold that often signals monopoly risk in U.S. antitrust analysis.
Issa also raised questions about Netflix’s approach to theatrical distribution, referencing past remarks from the company dismissing the relevance of traditional movie theaters. He argued that the consolidation could reduce incentives to produce new content for theatrical release, potentially harming employment and creative opportunities across the entertainment sector.
The concerns arise amid an ongoing wave of consolidation in Hollywood. Disney’s acquisition of Fox and Skydance’s recent purchase of Paramount have already reduced the number of independent major studios. Skydance is also considered a leading bidder in the current Warner Bros. Discovery sale process. Although Netflix is not expected to bid on the Company’s cable networks, a purchase would give it control of Warner Bros.’s extensive library of intellectual property and its production assets, a shift that many observers believe could further concentrate market power and reshape industry priorities.
Warner Bros. Discovery has set November 20 as the deadline for the first round of bids and has indicated that it aims to identify a future owner by the end of the year. Nevertheless, depending on the outcome of the strategic review, the Company may still proceed with its planned separation into Warner Bros. and Discovery Global.