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Warner Bros. Discovery has moved into the next phase of evaluating a potential sale, beginning its review of first-round acquisition bids submitted on Thursday by Paramount Skydance, Comcast and Netflix, according to a source familiar with the process. The preliminary offers, all nonbinding, mark the clearest sign yet that the century-old studio could undergo one of the most consequential shake-ups in modern entertainment.
The bids follow last month's disclosure that Warner Bros. Discovery had received inbound interest from "multiple parties." Its board plans to assess the proposals before Thanksgiving and determine a path forward by the end of 2025. All participants were required to sign nondisclosure agreements, and none of the companies, including Warner Bros. Discovery, have commented publicly.
Paramount Skydance, led by David Ellison and backed by the Ellison family and RedBird Capital, is viewed as one of the most aggressive suitors. Ellison previously submitted a mostly-cash $23.50-per-share offer that was rejected by Warner Bros. Discovery's board in October. His new bid is believed to be structured similarly and would include all divisions of the company, including its cable networks. Paramount argues that a merger would create a unified powerhouse across film, streaming and television, while posing fewer regulatory challenges.
Comcast, which is in the process of splitting NBCUniversal into two units, is interested primarily in the Warner Bros. studio and HBO assets. A combination would give the merged operation more than 40% of the North American theatrical market, bolstering both Universal's film pipeline and its theme-park intellectual property.
Netflix is pursuing the studio and streaming businesses as well, drawn to Warner Bros.'s extensive library and franchises such as "Harry Potter," DC and "The Lord of the Rings." But industry analysts note that any acquisition of HBO Max by the world's largest streaming service would face intense antitrust scrutiny. Netflix has reportedly assured Warner Bros. Discovery that it would honor existing theatrical commitments.
Warner Bros. Discovery has also left open the possibility of selling the Warner Bros. studio and HBO Max separately from Discovery Global, aligning with its previously announced plan to split into two public companies by April 2026. The board recently amended executive contracts to ensure stock-option protections in the event of a sale.
The company may still opt to reject all offers and proceed with its planned split, leaving Discovery Global with most of the existing debt load while Warner Bros. becomes a standalone public entity.
