What's happened
As of October 21, 2025, Warner Bros Discovery (WBD) announced a review of strategic alternatives following unsolicited interest from multiple parties, including bids for the entire company and its Warner Bros unit. CEO David Zaslav is considering options including a full sale, splitting Warner Bros and Discovery, or merging Warner Bros with another company. Shares surged over 10%.
What's behind the headline?
Strategic Options Reflect Market Dynamics
Warner Bros Discovery's decision to review strategic alternatives signals a pivotal moment in the media landscape. CEO David Zaslav is leveraging unsolicited bids to maximize shareholder value, reflecting confidence in the company's diverse portfolio, including HBO, Warner Bros studios, and CNN.
The Ellison Factor and Bidding War
David Ellison's Paramount Skydance has emerged as a key suitor, having made multiple bids reportedly up to $60 billion, all rejected by WBD's board seeking closer to $70 billion. Ellison's approach may escalate to a hostile takeover, appealing directly to shareholders, which WBD aims to preempt.
Market Interest and Industry Consolidation
Other major players like Netflix, Amazon, Comcast, Apple, and Microsoft have shown interest in parts of WBD, underscoring the industry's consolidation trend amid streaming wars and content competition.
Potential Outcomes
WBD could proceed with its planned split, sell the entire company, or divest Warner Bros to merge with another entity. This flexibility allows WBD to respond dynamically to market offers and shareholder interests.
Impact on Consumers and Industry
This strategic review will reshape content ownership and distribution, potentially affecting streaming services, cable networks, and studio productions. Consumers may see changes in content availability and pricing as new ownership structures emerge.
Conclusion
WBD's move is a calculated response to market pressures and opportunities. The unfolding bidding war and strategic review will likely culminate in significant industry realignment by mid-2026, with lasting effects on media consumption and corporate strategies.
What the papers say
Lauren Aratani in The Guardian highlights WBD's openness to either a full sale or splitting Warner Bros and Discovery, noting CEO David Zaslav's statement about "unsolicited interest from multiple parties" and the company's intent to "unlock the full value of our assets." Charles Gasparino of the NY Post provides deeper insight into the bidding dynamics, revealing that David Ellison's Paramount Skydance has made multiple bids, including a rejected $24-a-share offer, and may pursue a hostile takeover. Gasparino also notes Zaslav's valuation of the company at around $30 per share, supported by the board's willingness to reject lower offers.
The Independent and AP News confirm the strategic review announcement and note the involvement of other interested parties like Netflix and Comcast, while Bloomberg emphasizes the board's consideration of a broad range of options, including the planned company split by mid-2026. Business Insider UK quotes Zaslav on advancing strategic initiatives and scaling HBO Max globally, underscoring the company's confidence amid market interest.
Together, these sources paint a picture of a complex, competitive process with high stakes, where WBD balances internal restructuring plans against external acquisition pressures. The coverage reveals tensions between management's valuation ambitions and suitors' bids, with potential industry-wide implications.
How we got here
Warner Bros Discovery was formed in 2022 by merging Warner Bros and Discovery. In June 2025, WBD announced plans to split into two companies by mid-2026: one focused on studios and streaming, the other on cable networks. Recently, interest from media companies like Paramount Skydance, Netflix, and Comcast has intensified, prompting WBD to explore strategic alternatives.
Go deeper
- What are the strategic alternatives Warner Bros Discovery is considering?
- Who are the main bidders interested in Warner Bros Discovery?
- How will this potential sale affect streaming services like HBO Max?
More on these topics
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007.
Most recently under Zaslav, Discovery acquired Scripps Networks Interactive, in a transaction which closed in March 2018.
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ViacomCBS Inc. is an American diversified multinational mass media conglomerate formed through the merger of CBS Corporation and the second incarnation of Viacom in 2019, which were split from the original incarnation of Viacom in 2005.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.