In the wake of a swatted-away takeover bid from David Ellison’s Paramount Skydance, Warner Bros. Discovery on Tuesday announced that it “will evaluate a broad range of strategic options” regarding the future of the company. This marks the first public acknowledgment that the David Zaslav-helmed media giant may be kicking the tires on a sale of its assets, which include the TNT Sports unit and the 102-year-old film studio.
The review arrives on the heels of a flurry of “unsolicited interest … from multiple parties,” and while WBD did not identify its suitors, Tuesday’s disclosure was made just days after Zaslav’s team reportedly rejected Skydance’s bid of $20 per share. Ellison has been circling WBD since early September, having made his intentions known about a month after the completion of the $8 billion Skydance-Paramount merger.
Other well-heeled rivals that are said to be taking a long look at WBD’s TV and film portfolio include Comcast and Netflix.
As it happens, WBD’s statement coincided with opening day of the 2025-26 NBA season. This marks the first October since 1987 in which TNT won’t be televising live NBA games, although the network is licensing its signature studio show, Inside the NBA, to ESPN/ABC.
In a boilerplate paragraph at the tail end of the release, WBD stated that “no deadline or definitive timetable [has been] set” for completion of the review, before adding, “there can be no assurance that this process will result in the company pursuing a transaction or other outcome.” WBD went on to note that it will issue no further announcements about the matter “unless and until the board approves a specific transaction or otherwise determines further disclosure is appropriate or necessary.”
Among the most pressing issues WBD brass must sort out is whether to forge ahead with the proposed spinoff of its cable networks under the “Discovery Global Media” banner, or to effect a “transaction for the entire company.” WBD had been eyeing a mid-2026 close for the split.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Zaslav said in the release. “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.”
While WBD has indicated that it continues to believe that a spinoff may be the most efficient means of unlocking value, the company emphasized that any actions taken will be made in the best interests of its shareholders.
Under the initial spinoff proposal, which WBD announced on June 9, the studios and HBO brands would remain in Zaslav’s domain, while chief financial officer Gunnar Wiedenfels would oversee a standalone entity comprised of the cable channels and the Discovery+ streaming platform.
As of June, WBD’s debt load was $34.6 billion, down from the $52.5 billion figure that was announced upon completion of the Warner-Discovery tie-up in 2022. The company’s stock price has risen nearly 50% since word of Ellison’s interest in WBD first began circulating last month.
Shares of WBD were up 9.83%, to $20.12, in midday trading.
