Media conglomerate Warner Bros. Discovery said it is considering a full sale of the business due to interest from potential buyers. Among the interested parties may include Netflix and Comcast, notes CNBC citing sources. It was previously reported that Paramount Skydance head David Ellison is also in talks to buy Warner Bros. In October, Warner Bros. Discovery rejected Paramount's initial offer of about $20 per share, deeming it too low, Bloomberg wrote.

Wall Street analysts believe the new purchase terms could suggest $21 to $30 per share, CNBC reports .

The board of directors of Warner Bros. Discovery is considering several strategic scenarios, including the already announced plan to split the company into two publicly traded entities by 2026, which was revealed back in June. Under that plan, one company would combine movie production and streaming service HBO Max, while the other would focus on cable channels, including CNN, to separate the fast-growing streaming business from the slower-growing cable networks.

A potential sale or division would be one of the most significant events for the global media industry, which could prompt other players to reconsider their structures, emphasizes Bloomberg. Streaming services have fundamentally changed the market: traditional broadcasters have faced rising debts, content costs and audience fragmentation. The decline in interest in traditional media, caused by the mass withdrawal of viewers from cable TV and the overflow of audiences and advertisers to online streaming, is forcing the oldest media companies to restructure their business models and look for new sources of growth, Reuters explains.

"This development could pave the way for further negotiations with stakeholders. For Hollywood and other traditional media giants, everything leads to consolidation," PP Foresight analyst Paolo Pescatore said in a Reuters statement.

At trading on October 21, shares of Warner Bros. Discovery jumped more than 12% to $20.5. This became their maximum since April 2022. In general, investors welcome the idea of a possible takeover: since the beginning of the year the company's capitalization has grown by 73%.

This article was AI-translated and verified by a human editor

Share