Warner Bros. Discovery, the media giant that owns HBO, CNN, and numerous studio and streaming businesses, has announced that it is putting itself up for sale. The company stated that it is undertaking a "strategic alternatives review" to maximize shareholder value, which in financial jargon means seeking a potential buyer. This was reported by NBC News, writes UNN.
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In a press release, Warner Bros. Discovery announced that it had received unexpected interest from several potential buyers for both the entire company and just its Warner Bros. studio business. The company encompasses a wide range of media assets – from cable channels and news agencies to streaming platforms and popular franchises, including Harry Potter and DC comic book heroes such as Superman.
WBD also holds broadcasting rights for international sporting events, including the Olympic Games, the French Open, and the UK Premier League. Despite seeking strategic alternatives, the company continues its work on separating its cable business from its streaming and studio divisions.
Shares of Warner Bros. Discovery surged after the news, rising more than 10% in early trading. This move comes as the media industry continues multi-year consolidation efforts, partly driven by changes in consumer habits, including the growing popularity of online competitors such as Netflix, and declining cable television viewership.
Any potential deal for the company or its parts would be one of the largest in the media sector: WBD's market capitalization at the beginning of the week exceeded $45 billion, with the company also carrying significant debt. The Warner Bros. studio business could attract technology and streaming companies due to its box office hits and popular franchises.
WBD's history of transformations spans decades: starting with Time Warner, through AT&T's acquisition in 2016, and the merger with Discovery in 2022, the company has undergone numerous restructurings and merger attempts. The most recent deal involved combining HBO, HBO Max, Warner Bros. studio, and DC Comics into a new platform.