Warner Bros. Discovery Is Up for Sale. Its Stock is Up 10%.

Yuki Iwamura / Bloomberg via Getty Images Warner Bros. Discovery said its board is initiating a review of strategic options

Key Takeaways

Warner Bros. Discovery is evaluating options "in light of unsolicited interest the company has received from multiple parties," the entertainment company said. Shares of Warner Bros. Discovery are up in Tuesday trading and have gained 90% for the year.

Warner Bros. Discovery may be setting the stage for its next act.

Shares of Warner Bros. Discovery (WBD) soared more than 10% Tuesday, putting them among the leading Nasdaq advancers, after the media and entertainment giant said it was initiating a strategic review amid interest from multiple suitors.

Warner Bros. Discovery said its board had "initiated a review of strategic alternatives to maximize shareholder value, in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros."

Why This News Is Significant

Warner Bros. Discovery’s review is the latest move in a wave of deals and restructuring in the media landscape. The company’s potential breakup or sale underscores the pressure on traditional entertainment giants to face competition from tech-driven streaming rivals.

The Wall Street Journal reported in September that Paramount Skydance (PSKY), backed by the Ellison family, was preparing a cash bid for all of Warner Bros. Discovery.

Shares of Warner Bros. Discovery, whose holdings include HBO, CNN, TNT, and the Warner Bros. movie and television studios, have skyrocketed 90% this year, largely on significant gains after the mid-September news of Paramount's planned bid.

The latest options, Warner Bros. Discovery said, "include continuing to advance the Company's planned separation to completion by mid-2026, a transaction for the entire company, or separate transactions for its Warner Bros. and/or Discovery Global businesses." The company this summer said it intended to split into two companies by next year.

The company also said it would consider another separation that would involve a deal with Warner Bros. and a spin-off of Discovery Global. It did not announce a time frame for the review process.

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