First-round offers target film and streaming assets
Warner Bros. Discovery has received formal first-round takeover bids from Paramount Skydance, Comcast and Netflix, according to people familiar with the process. The offers were submitted ahead of the company’s deadline and focus primarily on the film and streaming divisions, which include the Warner Bros. studio and HBO Max.
Comcast, parent of NBCUniversal, bid exclusively for the studio and streaming assets. The proposal would place those units under the NBCUniversal umbrella, without requiring a spinout of NBCUniversal itself. Comcast is already spinning out many of its cable networks, including CNBC, but will retain NBC, Peacock, Universal Pictures and its theme parks.
The Comcast offer also includes a provision allowing WBD to spin off its own cable networks — such as CNN and TNT Sports — before any transaction is finalized. Company president Mike Cavanagh recently signaled that acquiring studio and streaming assets would complement NBCUniversal’s current portfolio and could be feasible under today’s regulatory climate.
Paramount and Netflix pursue targeted acquisitions
Like Comcast, Netflix submitted a bid focused solely on the film and streaming components. People familiar with the process described Netflix’s offer as “disciplined,” though the financial details of all three bids remain undisclosed.
Paramount Skydance resubmitted an offer as well — its fourth to date. Advisors had considered increasing the previous $23.50-per-share proposal rejected by WBD, but it is not yet clear whether the latest submission represents a higher valuation. Paramount continues to push strongly for a full takeover of WBD, and the company has already communicated multiple times with the WBD board outlining why it believes its bid best serves shareholders.
CEO David Ellison recently held preliminary discussions with sovereign funds in Saudi Arabia to explore potential financing options, though he and his father, Larry Ellison, are prepared to finance an acquisition without outside capital.
Sale timeline points to December decision
Warner Bros. Discovery notified bidders that their proposals had been received, with follow-up discussions expected soon. The company aims to conclude the sale process between mid- and late-December, with another round of bids anticipated in the coming weeks.
The process comes as WBD continues a strategic review of its operations and carries out its plan to split into two separate entities: Warner Bros., housing the studio and streaming businesses, and Discovery Global, which would contain the company’s pay-TV channels. Should a buyer acquire only the studio and streaming assets, Discovery Global would still proceed with its planned spinout, with current CFO Gunnar Wiedenfels expected to become CEO of that unit.
WBD shares closed at $23.19 on Friday, up 1 percent, and have risen more than 20 percent since the company announced in October that it was exploring a sale. The formal process leaves room for either a full-company acquisition or a deal focused only on selected assets, depending on which offer proves most compelling.
