Warner Bros Discovery is considering putting the entire company up for sale, a move that could result in significant restructuring in an industry that has experienced waves of changes since Donald Trump took office.
The company initially announced in June that it would separate Warner Bros and Discovery after the two companies merged in 2022. However, after receiving "unsolicited interest … from multiple parties for both the entire company and Warner Bros," according to a statement released on Monday, the entire company could be available for a transaction. They might also opt to split up Warner Bros and Discovery, selling off Discovery while merging Warner Bros with another company, it stated.
Warner Bros Discovery is the parent company of various subsidiaries, including CNN, HBO, DC Studios, and the Harry Potter franchise.
"It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets," stated David Zaslav, the Warner Bros Discovery CEO, in a statement.
The company mentioned that there was no deadline or definitive timeline for any transaction aside from the split-up of Warner Bros and Discovery. Shares of the company increased nearly 10% by Tuesday morning, hours after the announcement.
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This move is just the latest media shake-up at a time when companies seem empowered by a White House that is supportive of major mergers and acquisitions.
While it is unclear what offers Warner Bros Discovery has received over the past months, the company reportedly rejected a bid from Paramount Skydance for $20 a share for Warner Bros, an offer reportedly deemed too low for the company, according to Bloomberg.
Over the summer, Skydance Media completed an $8 billion merger with Paramount Global, resulting in David Ellison, son of billionaire Larry Ellison, becoming the head of a new giant media company.
Before the merger concluded, Paramount, the parent company of CBS, paid a $16 million settlement to Trump to resolve a defamation lawsuit against the news show 60 Minutes. The network also announced that it would cancel The Late Show With Stephen Colbert, a vocal critic of the Trump administration, in 2026.
In a letter sent to the Federal Communications Commission (FCC), which had to approve the merger, Skydance informed FCC chair Brendan Carr that it was "fully committed to presenting a diverse array of viewpoints on television." Carr later expressed that he was "pleased" with the company's commitment towards "serious changes at CBS."
Carr later became central to the controversy surrounding the brief cancellation of Jimmy Kimmel’s late-night show last month. Nexstar Media, one of the largest owners of local television stations looking to undertake a major merger requiring FCC approval, pre-empted Kimmel’s show for more than a week after Carr mentioned that the FCC could "take action" over Kimmel’s comments. "We can do this the easy way or the hard way," Carr stated at the time, although he has since clarified he wasn't making any threats.
Earlier this month, Paramount Skydance announced it would acquire the Free Press, a media startup founded by Bari Weiss, known for her criticisms of "cancel culture" and the liberal establishment, and gave Weiss a new role at CBS News as editor-in-chief.
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