Warner Bros. Confirms Multiple Bidders as Stock Soars — Paramount Still Frontrunner, Netflix Scoffs

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As I’ve been reporting for a long time, Warner Bros. Discovery is now a target for potential buyers. CEO David Zaslav has confirmed that the company has received offers from several parties interested in buying either the whole company or parts of it.

This involves its valuable Warner Bros. studio and the HBO Max streaming service. As part of a previously announced plan, these will become a separate company in 2026, splitting the business into two main parts: one for streaming and studios like Warner Bros., and another for traditional TV networks like Discovery Global.

This development follows Skydance CEO David Ellison’s first offer (estimated at $20 per share), which Warner Bros. Discovery turned down. Now, with companies like Paramount, Comcast, and Netflix also interested, the potential price is increasing and the competition is becoming more intense.

Zaslav: “Multiple Parties” Are Interested in Warner Bros.

Warner Bros. Discovery announced on Tuesday that its board is exploring options for the future, including a potential sale of the company or parts of it, such as the Warner Bros. studio, after receiving offers from interested parties.

According to a statement reported by Deadline, Zaslav acknowledged growing market recognition of the company’s valuable holdings. He explained that the current review aims to maximize the worth of Warner Bros. Discovery’s assets. There’s no set timeframe for this review, and all possibilities are being considered, including keeping the planned 2026 separation of the company, or potentially merging Warner Bros. with another company and separating Discovery Global as a standalone entity.

In other words, exactly what I said was coming is now happening.

Paramount Skydance Still the Favorite—For Now

Even though Warner Bros. Discovery turned down Skydance’s first offer, many financial experts still believe Skydance is the most likely company to buy Paramount. Skydance recently acquired a significant stake in Paramount Global and has financial support from Larry Ellison, the chairman of Oracle, who is also acquainted with Donald Trump. They currently have an advantage over competitors like Comcast and Apple, both in terms of progress made and the ease of getting regulatory approval.

According to analysts at TD Cowen and MoffettNathanson (as reported by Deadline), Paramount is still the most likely company to be acquired. One analyst suggests that if Warner Bros. Discovery (WBD) was always intended to be part of the plan for Skydance to acquire assets, Skydance will likely be very proactive in pursuing them.

The fact that Warner Bros. Discovery turned down the initial offer suggests David Zaslav isn’t in a rush to sell. He appears to be encouraging multiple companies to compete for the deal, and it’s already having an effect – WBD stock is now trading at $20.33, which is higher than Larry Ellison’s first offer. This means Skydance will likely need to increase its bid or offer more favorable conditions, just as I predicted.

Comcast Still Circling, Despite Political Roadblocks

As I mentioned before regarding James Gunn, Deadline reports that Comcast (Universal) is still a possible buyer. However, Comcast faces significant challenges with regulators and potential political opposition. Because Comcast owns MSNBC and NBC, it could face antitrust concerns, particularly with a Trump administration that has often criticized those networks. Current views at the Federal Communications Commission also aren’t supportive of Comcast’s company structure or its diversity and inclusion initiatives.

One analyst stated plainly that it’s hard to imagine Comcast successfully acquiring any major company. However, with limited options remaining, Comcast might still attempt to raise the price to prevent rivals from buying or to simply gain a smaller ownership share.

Netflix Publicly Scoffs—But Is Still Watching

Then there’s Netflix, which many DC fans hope will become the winner.

Despite public statements from its leaders saying they aren’t interested, the company hasn’t dismissed the possibility of mergers and is closely monitoring what’s happening in the industry. During an earnings call on Tuesday, Co-CEO Ted Sarandos (according to Deadline) suggested that previous media mergers, such as Disney’s acquisition of Fox and Amazon’s purchase of MGM, haven’t drastically changed the competitive environment.

Netflix believes it can succeed without acquiring old-fashioned studios. They’d rather develop their own strengths in-house and steer clear of the complications that come with traditional media, such as cable TV and complicated licensing agreements. This aligns with my previous point: Netflix isn’t interested in buying entire media companies, particularly the cable portions, but they might consider Warner Bros. if it were to separate from its parent company.

Netflix hasn’t made a bid for Warner Bros. Discovery yet, and experts think the company’s overall value – around $75 to $100 billion, including $30 billion in debt – is likely too high. Netflix’s Ted Sarandos avoided discussing potential studio acquisitions, suggesting they aren’t currently pursuing one. While a deal isn’t impossible, Netflix isn’t actively working on it at the moment.

What Happens Next?

Warner Bros. Discovery is still considering offers as it prepares to spin off its sports division in 2026. The Ellisons are likely to make another, higher bid. Comcast might try to acquire part or all of the business, and Netflix is watching the situation closely. Meanwhile, Amazon, Apple, or private investment firms could also enter the bidding at any moment.

Bottom line: this is just getting started, and Zaslav is playing it exactly how I said he would.

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2025-10-22 03:34