Warner Bros. Discovery Stock Hits 52-Week High on Buyout Interest
Shares surge over 10% after the media giant confirms it is reviewing unsolicited offers and sharing financial data with potential suitors.
Warner Bros. Discovery Inc. (NASDAQ: WBD) shares surged to a new 52-week high on Tuesday after the media conglomerate confirmed it is formally reviewing strategic alternatives, including a potential sale, after receiving unsolicited buyout offers from multiple parties.
The stock jumped more than 10% in afternoon trading to close around $20.33, propelled by news that the company has begun sharing financial data with potential bidders. The move signals a significant step forward in a potential sale process for the owner of HBO, CNN, and the Warner Bros. film studio, fueling intense speculation across Wall Street and Hollywood about the next wave of media consolidation.
The confirmation follows reports that the company, led by CEO David Zaslav, had already rebuffed multiple offers from a combined entity of Paramount and Skydance. One of the bids was reportedly valued near $24 per share, or approximately $60 billion, but was deemed too low by the Warner Bros. Discovery board, according to TheWrap.
In a statement, the company acknowledged the unsolicited interest and announced a formal review to maximize shareholder value. “The Board of Directors has received unsolicited offers from multiple parties for a potential transaction for the whole company, or for the Warner Bros. streaming and studio business,” the company disclosed. The review will consider a full sale or separate transactions for its distinct business units.
This development places Warner Bros. Discovery squarely in play, attracting a roster of deep-pocketed suitors from both traditional media and big tech. Beyond Paramount, potential bidders are rumored to include Netflix, Comcast, Apple, and Amazon, each with a distinct strategic rationale for pursuing one of Hollywood's most storied content libraries.
For a rival studio like Comcast or Paramount, an acquisition would be a powerful consolidation play, creating a media behemoth with unparalleled scale in film and television production. A Comcast-WBD merger, for example, would unite the Harry Potter intellectual property under one roof, creating immense synergy with Universal's theme parks. For Paramount, a deal would combine two historic studios and create a sports broadcasting powerhouse by merging TNT Sports with Paramount's NFL and Champions League rights.
Tech giants see a different prize. For Netflix, acquiring WBD would provide a treasure trove of premium content, including the HBO library and DC Comics franchises, instantly bolstering its streaming dominance. Apple could supercharge its Apple TV+ service, transforming it into a formidable competitor overnight, while Amazon could integrate WBD’s assets to further strengthen its Prime Video ecosystem and drive its core retail business.
However, any potential mega-deal would face significant regulatory hurdles. Antitrust regulators would closely scrutinize a merger with Comcast or Netflix, which could raise concerns about market concentration in the streaming and content production sectors. As noted by Forbes, such bids could trigger an intensive review process.
Investors are weighing the strategic possibilities against the company's financial position. Warner Bros. Discovery currently holds a market capitalization of just over $50 billion and is saddled with a significant debt load of roughly $35 billion, a legacy of the 2022 merger between WarnerMedia and Discovery Inc. While the company has made progress in deleveraging and recently turned its streaming division profitable, the debt remains a key consideration for any potential buyer.
As the strategic review unfolds, all eyes are on CEO David Zaslav and the board. Having orchestrated one of the largest media mergers in recent history, Zaslav is now positioned to preside over its potential sale. Analysts suggest a compelling offer would likely need to approach the $30 per share mark to secure a deal, setting the stage for a high-stakes bidding war that could reshape the global media landscape.