Warner Bros. Discovery Puts Itself Up For Sale, Citing Interest From ‘Multiple’ Suitors

The media giant says it has received “multiple” expressions of interest from potential buyers, indicating that Paramount Skydance is not the only suitor for the media company.

In a Tuesday morning statement, WBD said its board of directors has started a “review of strategic alternatives,” which could result in a sale of the entire company, a continuation of the current plan to split the company into two, or some other outcome.

Paramount has been making overtures to buy all of WBD in advance of the planned split, signaling that a behind-the-scenes bidding war is underway. The WBD board rebuffed the first offer, two people with knowledge of the matter told CNN last week. One of the sources said both sides recognized it was a “lowball” proposal by Paramount’s new CEO, David Ellison.

Paramount has declined to comment on its interest in WBD, but Ellison has kept up the pressure in recent days, the sources said.

Warner Bros. Discovery CEO David Zaslav has been preparing to split the company into two publicly traded halves, believing Warner Bros. (which would house the HBO Max streaming service and the movie studio) and Discovery Global (which would house CNN and other cable channels) will be much more highly valued that way.

WBD may still decide to complete the planned split, but Tuesday’s announcement suggests that other outcomes may be more likely.

Comcast is one of the other media industry heavyweights that is evaluating WBD’s assets, given Warner’s openness to a deal, two people with knowledge of the matter said. A Comcast spokesperson declined to comment.

Wall Street analysts have asserted that both Comcast and Netflix could be interested in the streaming and studios half of WBD, given the iconic brands and shows that the company controls.

Rather than kicking the proverbial tires next year, after the breakup would take effect, suitors are likely to conduct due diligence and consider a bid now, since WBD has said it is open to offers.

“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Zaslav said in a statement. “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.”

Zaslav told employees in a separate memo that “evaluating potential interest, conducting due diligence, and assessing next steps will take time, likely over a period of weeks and months.” He said “there’s no set timeline for final decisions.”

Zaslav outlined several possibilities: The already-planned split, “a transaction involving the entire company,” “separate transactions for Warner Bros. and/or Discovery Global,” or “an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders.”

Warner Bros. Discovery Rejects Paramount Skydance Second Bid For The Company

Paramount Skydance boss David Ellison has bid $24 a share for Warner Bros. Discovery – a mega-deal worth $57 billion that was nevertheless rejected as takeover negotiations between the media giants heat up.

The latest back and forth – which has played out only in recent days – marks the third straight time Ellison has been rebuffed as WBD’s wily CEO David Zaslav shops the company to a number of large media and tech outfits, sources said. 

News of the spurned $24-a-share bid hasn’t previously been reported. On The Money reported last week that such a bid was in the offing. Now, people inside WBD are expecting a fourth bid from Ellison imminently, On The Money has learned.

On Tuesday, WBD disclosed that it has received “unsolicited interest” from prospective acquirers and said it was open to a sale – news that sent the company’s stock soaring nearly 12%. The shares on Tuesday recently added $2.12 to trade at $20.44. 

A rep for Zaslav had no comment; a Skydance spokeswoman also declined to comment.

WBD said it has “initiated a review of strategic alternatives” following “unsolicited interest the Company has received from multiple parties.” Those include bids for the whole company as well as offers for parts that include its top-ranked studio and popular streaming service, HBO Max, which WBD plans to spin off from its cable properties in April.

Prompting the Tuesday announcement, sources said, was the belief by Zaslav and his team that Ellison was imminently prepared to ramp up pressure on them to sell with a public announcement of his intentions, one that could bring his bid to between $26 and $28 a share.

Such a move, known as a hostile takeover, is where the suitor appeals to shareholders of a target company as opposed to privately working with a company’s board. Zaslav & Co sought to circumvent Ellison’s attempt to use a public bid as leverage on WBD to take what management believes is an inferior offer, these people add.

Zaslav believes his properties — which include the No. 1 ranked studio, the No. 3 ranked streaming services, a top cable channel in HBO, a still profitable news channel in CNN as well as billions of dollars worth in intellectual property — is worth as much as $30 a share or more, meaning he wants Ellison to pay above $70 billion for the entire company.

He has successfully argued to his board in rejecting three offers from Ellison that he can hold out for more money; some analysts have just his streaming and studio businesses – set for a May spin-off from his global cable properties – valued at $30 a share.

Zaslav has the support of his board to continue to reject offers until they come close to $30 a share, people with knowledge of the matter say. In the meantime, he will continue to pursue the breakup of his company, while he shops either all of it or various pieces, The Post has learned.

The Post was first to report WBD has received interest – particularly in its studio and streaming service – from Netflix, Amazon, Comcast and even media giant Apple. Microsoft, which also has a small streaming service, is also said to have looked at parts of the company.

The hard “no” from Zaslav is the latest rebuff for Ellison after the independent movie producer – who also is the son of tech tycoon Larry Ellison, the world’s second-richest person – snapped up Paramount in August.

As previously reported, Ellison has tapped private equity giant Apollo for financing of the deal. His media company, Paramount Skydance, is part of a partnership with private equity powerhouse Redbird Capital run by veteran media-dealer Gerry Cardinale.

It’s still unclear what role Larry Ellison will play in the unfolding drama in terms of funding a mega purchase like WBD, which would cost many multiples of the $6 billion David Ellison recently paid for Paramount, a mid-sized media company with flailing assets like MTV and CBS and a middling studio. 

Some media business observers say the elder Ellison has been reluctant to sell his Oracle stock for the purchase of WBD, which accounts for David Ellison’s so-far tepid bidding for the company and has given Zaslav room to reject those bids.

Warner Bros. Discovery Rejects Paramount's Initial Bid For The Company

Warner Bros Discovery Inc. has rebuffed Paramount Skydance Corp.’s initial takeover approach for being too low, according to people familiar with the matter.

Warner Bros. rejected Paramount’s offer of around $20 per share in recent weeks, the people said, asking not to be identified because the matter is private.

Paramount, led by David Ellison, has several options in its pursuit of Warner Bros., including boosting its bid, going directly to shareholders or finding additional backing through a financial partner, they added.

CNBC’s David Faber reported last week that the companies are in talks about a deal but are in disagreement over price and that Paramount could make its offer public to shareholders to pressure Warner Bros.

Representatives for Paramount and Warner Bros. declined to comment.

Warner Bros. shares closed at $17.10 on Friday, giving the company a market value of $42.3 billion. Paramount shares were at $17 a share, valuing it at $18.6 billion.

Ellison, the son of billionaire Larry Ellison, took over Paramount, the parent of CBS, Nickelodeon, MTV and the namesake movie studio, in August after completing an $8 billion merger with his film production company Skydance Media.

Paramount has been in talks with alternative asset manager Apollo Global Management about backing its bid, Bloomberg News reported last week.

Ellison said at the Bloomberg Screentime conference last week that he couldn’t comment on Warner Bros. specifically, but he did make the case for more industry mergers.

Warner Bros. plans to split into two businesses, one focused on cable TV and the other on streaming and studios, in a deal expected to be completed next year.

Warner Bros. CEO David Zaslav believes he can get a hefty premium for his streaming and studios businesses once they’re separated from the debt-laden cable networks, Bloomberg News previously reported. To clinch a deal, Ellison will have to convince him that he isn’t leaving money on the table by selling before that happens.

Could Paramount Skydance Pursuit Of Warner Bros. Discovery Become Another Disney/FOX?

According to Wall Street Journal, Paramount Global following its recent tie up with Skydance Media is looking to make a bid to acquire Warner Bros. Discovery. This is before the merged entity split to form Warner Bros. and Discovery Global in April 2026.

News of a merger like this first began in 2023 of course it was Warner Bros. Discovery that was sinking it's teeth into Paramount Global. Of course, several insiders had mentioned that the company's CEO David Zaslav wasn't in a negotiating mood which could as well be what's befallen Paramount.

Then again, Skydance through Oracle has the cash to swallow up Warner Bros. Discovery and this would amount to $65 billion from what sources indicate. Of course, the deal should it happen would face intensive scrutiny especially by the FCC and the European Commission.

Even if Paramount Global were to offer such a large sum there's no guarantees that Warner Bros. Discovery will accept the offer as shareholders could hold out in the hopes to get more money. At the same time with Warner Bros. Discovery being almost $40 billion in debt this would be a great escape for shareholders.

As mentioned, this deal should it be happen and get the greenlight from regulators they'll likely impose certain conditions. And I assume Paramount Global is aware of the repercussions and is likely not looking to acquire Warner Bros. Discovery to its entirety.

When Disney acquired FOX certain conditions were imposed because FOX offered a rival brand National Geographic this led to them selling their stake in Hearst Networks in Europe. Same goes for the FOX and FOX Sports network, because Disney didn't rival with these brands outside the US they were granted ownership.

Because FOX Corporation still continues to operate independently and own these trademarks, Disney had to phase out the FOX trademark from various of their assets. And if Paramount Global was able to acquire Warner Bros. Discovery we can only assume this deal will exclude a majority of Turner's Networks.

Turner's Networks would comprise of Cartoon Network, Adult Swim, Cartoonito, CNN, TNT, TBS, TNT Sports and Warner TV. If they were able to acquire these assets it may involve divesting in other assets such as Comedy Central, CBS News, Nickelodeon and Showtime.

Paramount Skydance Looking To Acquire Warner Bros. Discovery Amid Split

Paramount Skydance is working with an investment bank as it prepares an offer for Warner Bros. Discovery, according to people familiar with the matter.

Warner Bros. Discovery had yet to receive an offer as of Thursday, according to people familiar with the matter, who spoke on the condition of anonymity to discuss nonpublic dealings. A bid could come as early as next week, CNBC's David Faber reported Thursday.

Shares of Warner Bros. Discovery soared more than 25% on Thursday after an initial report from the the Wall Street Journal that the recently merged Paramount Skydance was preparing a takeover bid.

Representatives for Paramount and Warner Bros. Discovery declined to comment.

Shares of Paramount Skydance were up roughly 8% in afternoon trading.

Warner Bros. Discovery recently announced plans to separate its global TV networks business from its streaming business and studios. The Journal reported Thursday the Paramount Skydance bid would be an all-cash offer for the entirety of WBD.

Earlier this week, WBD CEO David Zaslav said at an investor conference that the planned separation would likely be completed by April. The streaming and studio assets would be renamed Warner Bros., while the global TV networks business — which will own a suite of pay TV networks including TNT and CNN — will be Discovery Global.

While WBD executives said in June that each company would be "free and clear" to do deals following the split, a bid before the separation would have to be for the entire company, one of the people said.

Media Moves

The media industry has been navigating a transformation as streaming has upended the pay TV bundle, a longtime cash cow for TV and entertainment companies.

A merger between Paramount Skydance and Warner Bros. Discovery would create a media behemoth with a huge portfolio of pay TV networks, a sprawling range of sports rights and two major film studios.

Paramount Skydance owns broadcast network CBS, as well as pay TV networks like BET, MTV and Nickelodeon, and streaming service Paramount+. Its film studio is known for movies like "The Godfather," "Top Gun," and "Forrest Gump."

With the exception of a broadcast TV network, WBD has similar assets — with networks like CNN and TNT, as well as HBO and streaming service HBO Max. Its Warner Bros. film studio also has a historic track record, and owns the intellectual property to franchises like "Harry Potter," DC Comics and "The Lord of the Rings."

Both companies have a long list of major sports rights, too, the marquee content for all traditional TV and streaming platforms. A merger would put the likes of the NFL, MLB, an array of college football and basketball, and other major sports under one roof.

Media executives and experts have expected consolidation could be coming to the industry.

Zaslav has said publicly for some time that media companies need to consolidate. During an earnings call in November, shortly after Donald Trump was elected as president, Zaslav said a new administration could usher in more dealmaking.

However, in recent months, some media companies have moved toward separation. Late last year, Comcast announced that its NBCUniversal would spin off its pay TV networks, which includes CNBC and MSNBC, into a separate, publicly traded entity. Months later, WBD announced it would make the same move.

Paramount Skydance is the result of an $8 billion merger that was announced last year and received regulatory approval in August to move forward after a lengthy delay.

The Federal Communications Commission cleared the way for the merger weeks after Paramount agreed to pay $16 million to Trump to settle a lawsuit he filed against the company over the editing of an interview on CBS's "60 Minutes" with former Vice President Kamala Harris.

At the time of deal's approval, FCC Chairman Brendan Carr said in a statement that he welcomed "Skydance's commitment to make significant changes at the once storied CBS broadcast network."

The company is looking to cut more than $2 billion in costs, and layoffs are expected to continue. Last week, Paramount SKydance sent a memo to its employees saying they were expected to return to the office five days a week in the new year, or seek a buyout.

A lot has changed since the merger, which was backed by RedBird Capital Partners. The company has done a slew of deals under the leadership of David Ellison, son of Oracle founder and multibillionaire Larry Ellison, including acquiring the U.S. rights to TKO Group's UFC for seven years, beginning in 2026.

On Wednesday, Larry Ellison became more than $100 billion richer after software company Oracle issued growth projections that dramatically lifted the company's stock.

David Ellison And Paramount’s New Regime Vows To Boost Nickelodeon And Family-Friendly Content, Invest In Paramount+ And Hang On To Cable Channels

 BET Networks is no longer being shopped to third-party buyers, the new leadership regime at Paramount Skydance confirmed on Wednesday, August 13 as top executives gathered for a wide-ranging Q&A with journalists.

David Ellison, Chief Executive Officer (CEO) of the studio that he acquired last week, told reporters that BET and its content franchises would be a key part of the new regime’s streaming strategy. Ellison said the plan is to operate the company with its assets intact — that’s in contrast to the string of assets sales that Paramount Global and its predecessors have done in recent years. BET in particular had been shopped to a number of prospective buyers in private equity and prominent Black investors and stars including Tyler Perry.

Ellison said the concept of keeping Paramount Pictures, CBS and other assets together was a key point of his earliest discussions last year about buying the studio with former Paramount Global chair and majority shareholder Shari Redstone.

“We had this conversation with Shari when we had the first meeting, actually about the company. It is our intention is to keep the company together and invest in that lens,” Ellison said.

“We’re thinking about the cable network is not as declining linear assets that we need to spin them up or deal with somehow. We’re thinking about those brands that we have to redefine,” Ellison said. “Nickelodeon is also one of those. Fids and family is so important to the world and making sure that we’re doing the right thing for Nick and that whole cadre of content is critically important to us as well.”

Overall, Ellison and his top lieutenants sketched out a roadmap for the new Paramount Skydance team’s priorities that include increased investment in the Paramount Pictures studio, CBS and the Paramount+ streaming platform. Ellison and Paramount president Jeff Shell reiterated that the plan is to consolidate the company’s major streaming assets — subscription service Paramount+ and free ad-supported (FAST) platform Pluto TV — into one central service to save operating costs and to make Pluto TV a better driver of subscriptions for Paramount+.

Joining Ellison and Shell at the session were Andy Gordon, Chief Strategy Officer and Chief Operating Officer; George Cheeks, Chair of TV Media; Dana Goldberg, Co-Chair of Paramount Pictures and Chair of Paramount Television; Josh Greenstein, Co-Chair of Paramount Pictures and Vice Chair of Platforms; and Cindy Holland, Chair of Direct-to-Consumer.

Asked point blank if the programming budget for Paramount+ will increase to make the service competitive with larger rivals such as Disney+ and HBO Max, Ellison said yes. Cindy Holland, the Netflix alum who is leading streaming operations for the new Paramount, was also blunt when asked if she intends to commission made-for-streaming movies from the sibling studio. “Made for streaming movies are not a priority for me,” she said.

Gerry Cardinale, head of RedBird Capital which also had a big role in financing the $8 billion transaction, offered an expansive view of a team ready to spend what it takes to upgrade Paramount’s aging infrastructure. Cardinale complimented Ellison for being a savvy business executive in addition to having the creative ambition to own a movie studio, Big Three broadcast network and more.

“I’m betting my firm and my career on this deal. That should tell you guys one thing: We are coming, we are going to invest, and we’re going to be really sophisticated. This is not other people’s money,” Cardinale said. He even suggested that the Paramount Skydance ethos would not only change the corporate culture at Paramount and CBS but influence the broader industry.

The new regime is thinking about “How do we build the culture, not just for Paramount but for Hollywood,” Cardinale said. “I could not be more excited. Yes we are going to be investing a lot of money, and we’re going to show the great return on that investment.”

Among other highlights from the Q&A session:

“I’m here because I love movies,” Ellison said flatly when discussing his motivations for executing the complex acquisition that took more than a year to complete. The 42-year-old CEO described Sundays spent watching movies on VHS with his mother. “Our idea of a good time on Sunday was, we had 3,000 VHS movies, and Sunday was the one day we were kids that we could actually do whatever we wanted. And we would just binge all day long.”

Ellison also saluted the star that has had a long association with Paramount and Skydance when pressed about the status of the studio’s follow-up film to 2022’s Top Gun: Maverick.

“We’re really proud and honored that in our partnership with Tom, we have made 10 movies together. We want to be in business with Tom for the foreseeable future,” Ellison said. "Top Gun cannot be a bigger priority. I want to be making movies with Tom and telling stories with Tom for as long as he wants to be doing it. There’s nobody who works harder and who loves movies and loves business more.”

Ellison was pressed about the new regime’s view on CBS News. The slog of closing the merger took a toll on the Eye’s news division as President Donald Trump waged war with a baseless $20 billion lawsuit against 60 Minutes over its Kamala Harris interview. A $16 million settlement with Trump paved the way for the FCC to approve the Paramount Global Skydance transaction.

CBS News and the journalism it produces “is something that is incredibly important to me that we couldn’t support more,” Ellison said. “It’s also the area of company that we want to invest in. For sure it’s a vital part of our democracy, and it’s an honor to be part of that organization.

Goldberg, co-chair of Paramount Pictures and Paramount Television, buttressed Ellison’s pledge to invest in strong family and YA-friendly movies and TV shows. “That’s a space we’re going to run toward,” she said.

Goldberg also emphasized that there will be a new approach to managing Paramount’s valuable Star Trek franchise. "Star Trek is absolutely a priority, and it’s priority across the company,” Goldberg said. “We’re not going to be siloed off so that there’s a conversation happening about television and another conversation” about film plans.

Ellison made a point of asserting that the new ownership group is aligned with the interests of Paramount Skydance’s common shareholders. The company is bracing for widespread layoffs that will be part of the company’s pledge to find $2 billion in savings post-merger.

“What we need to do to make sure we can run as efficiently possible can as a company. And then the other is where we need to invest for growth, for long term,” Ellison said. He noted that the Ellison family and RedBird own 70% of the economic interest in the company. “We’re the largest shareholders. So from that standpoint, we’re going to look at everything through a long-term value creation lens.”

MTV Entertainment Studios, Home To Ridiculousness And Catfish: The TV Show Is Shutting Down

A year ago, Paramount Television Studios was shuttered in a cost-cutting move as its parent company prepared to merge with Skydance.

With that deal on the verge of closing, the new Paramount is reviving the Paramount TV Studios name — which will in turn absorb one of the company’s two remaining studio operations as well as the formerly independent Skydance Television.

Skydance TV president Matt Thunell is set to lead Paramount TV Studios, reporting to Dana Goldberg, the newly named co-chair of Paramount Pictures (with Josh Greenstein) and chair of Paramount Television.

The reconstituted Paramount TV Studios will house productions currently under Showtime/MTV Entertainment, the home of prolific creator Taylor Sheridan (the Yellowstone-verse, Landman et al), key Showtime series like the Dexter franchise and Yellowjackets, and Netflix’s Emily in Paris, among others. It will also be home to Skydance productions including Prime Video’s Reacher and Cross — which were co-productions with the former Paramount TV Studios.

Paramount announced in August 2024 that PTVS, then led by Nicole Clemens, would shut down. Its productions — including the aforementioned Reacher and Cross and Apple TV+’s Murderbot — moved to CBS Studios. The shutdown was part of a wave of cost-cutting moves, which included hundreds of layoffs, in the year-plus leading up to the merger, which is set to formally close on Aug. 7.

Former Paramount co-CEO Chris McCarthy previously headed Showtime/MTV Entertainment but will not remain with the merged company after the deal closes. Keith Cox, head of scripted at Showtime/MTV Entertainment, is expected to stay on; Cox has a long working relationship with Sheridan and David C. Glasser, the head of 101 Studios which co-produces Sheridan’s shows and Showtime’s The Agency.

Thunell became president of Skydance TV in late 2022 after nearly eight years at Netflix, where he oversaw development and production of series in the U.S. and Canada.

Former Paramount co-CEO George Cheeks will have CBS Studios in his portfolio as the merged company’s chair of TV media, which also includes the CBS network and the company’s cable channels.