Warner Bros Discovery Rejects Paramount Offer, Considers Sale Options

Post by : Saif Nasser

Warner Bros Discovery (WBD) has rejected a $60 billion offer from Paramount Skydance, sources told Reuters, and is now exploring other options for the sale or restructuring of the company. The offer, valued at nearly $24 per share, was mostly cash and included Paramount taking over WBD’s major assets such as Warner Bros film and TV studios, CNN, other cable channels, and HBO Max streaming service.

Shares of WBD rose 11% following the announcement. The board’s decision to reject the offer highlights the company’s interest in seeking a better deal or alternative plans that could maximize value for shareholders. WBD is also considering a split of its businesses, separating studio-focused operations from its cable networks to strengthen its streaming growth.

Comcast and Netflix are reported to be potential buyers or interested parties, with discussions ongoing. Analysts note that a sale of WBD could reshape the media landscape, as streaming services and studio ownership are becoming central to competition in entertainment.

The company’s board is weighing multiple strategies, including the full sale, partial sale, or separation of Warner Bros and Discovery Global businesses. Another option under review is merging Warner Bros with one part of the company while spinning off Discovery Global.

The rejection of Paramount’s offer comes after an earlier bid of around $20 per share was also declined as too low. Analysts value WBD’s assets, including major franchises like Harry Potter, DC Comics, Lord of the Rings, and Game of Thrones, and believe the company could fetch a higher price. Bank of America estimated the company’s fair value at about $30 per share.

While any sale could provide the buyer access to major studios and streaming services, it would also require assuming WBD’s approximately $35 billion debt. WBD’s market valuation currently stands at $45.36 billion, and its stock has jumped over 46% since reports of Paramount’s interest emerged in early September.

Paramount’s interest, led by Skydance CEO David Ellison, comes shortly after the company acquired Paramount itself. Analysts point out that the Ellison family’s substantial resources, supported by Oracle co-founder Larry Ellison, give them strong financial capability to pursue such acquisitions. Their connections with U.S. political figures could also help ease regulatory scrutiny.

Analysts suggest that streaming giants like Netflix might prefer to acquire the studio part of WBD after a potential split, as TV networks may hold less strategic value for them. Other media and tech companies such as Comcast, Amazon, and Apple are also considered possible suitors for parts or the whole company.

Warner Bros Discovery’s decision to reject the offer indicates a careful evaluation of both market value and strategic options. A sale or split of the company could become one of the most significant developments in the global media industry, affecting studios, streaming platforms, and cable networks worldwide.