Warner Bros. Discovery has formally confirmed that it has initiated a strategic review of its options, including a potential sale or partial divestiture, after receiving unsolicited interest from multiple parties. The announcement follows the company’s planned 2026 split into two entities: one grouping its streaming and studio operations, and the other its cable networks.
The move comes amid reports that buyers such as Paramount Skydance (backed by the Ellison family), Comcast Corporation and Netflix have either expressed interest or begun informal discussions. Analysts estimate WBD’s enterprise value in the region of US$ 40-45 billion, with debt of about US$ 35 billion complicating any transaction.
A sale of WBD or one of its divisions could trigger large-scale financing activity, leveraged buy-outs, debt refinancings and asset spin-outs, and set a precedent for how legacy media firms respond to the streaming era disruption. The decision by the board to open the strategic review signals that the company is willing to consider alternatives beyond the previously announced demerger.
For investors, the implications are multi-layered: WBD’s share price jumped around 10% upon the announcement, reflecting speculative value for a potential deal. Meanwhile, the firm’s vast rights library (HBO, Warner Bros films, etc) is a strong asset, but its declining linear network business (cable and news) remains a drag.
