Warner Bros. Discovery (WBD), one of the world’s largest media conglomerates, has announced it is putting itself up for sale—thanks, NBC.
In a recent press release, the company revealed it is conducting “a review of strategic alternatives to maximize shareholder value” following “unsolicited interest” from “multiple parties for both the entire company and Warner Bros.”
The announcement caused an immediate spike in WBD’s share price. After hovering around the $10 mark for most of the year, shares are now trading at just over $21. Currently, the company is valued in the region of $45 billion, though any potential sale could push that valuation even higher.
It’s hard to overstate just how extensive WBD’s reach is across the media landscape. The company owns HBO, CNN, game studios, movie studios, multiple streaming platforms, and a wealth of mega-franchises including Harry Potter and DC Comics. Additionally, WBD holds broadcast rights to major sporting events such as the Olympics and the English Premier League.
Despite the sale announcement, WBD says it will continue to work on previously announced plans to separate its cable networks from its studio and streaming businesses. This move addresses one of the company’s key challenges: a decline in cable TV viewers as more consumers shift to internet-based competitors.
Once completed, this separation will see assets like HBO, the HBO Max streaming platform, Warner Bros. studios, and DC Comics spun off into a distinct company.
A major question remains whether any acquisition will cover the entirety of WBD or focus solely on its most valuable “crown jewels.” Back in September, Paramount was rumored to be preparing a bid for the whole company, though those talks appear to have gone quiet for now.
This development is just the latest chapter in the ongoing saga of media consolidation we’ve been witnessing for years. Any deal involving a direct competitor will likely face significant regulatory scrutiny—similar to the challenges seen during AT&T’s acquisition of Time Warner. That deal ultimately led to Time Warner being spun off and merged with Discovery, creating the company we know today.
As this story unfolds, all we can do is keep our fingers crossed—and hope it doesn’t end up in the hands of the Saudis.
https://www.pcgamer.com/gaming-industry/warner-bros-discovery-goes-up-for-sale-if-youve-got-a-spare-usd45-billion/
