Warner Bros. Discovery Considers Full Sale Amid Buyout Offers
Presidents are thus contemplating a full-blown sale involving the distribution networks of a cash-strapped company that has received unsolicited offers for a buyout from many parties. Among other alternatives, these plans will further explore the execution of the sale of the entire company or its individual assets, along with the current restructuring plan to break the company into two.
What Are the Options Under Consideration
A detailed boardroom review will consider a multitude of avenues to maximize shareholder value. As such, the key options being considered include:
- Continuing with planned separation of Warner Bros. and Discovery Global, anticipated by mid-2026.
- All-out buyout of Warner Bros. Discovery.
- Separate buyouts of either Warner Bros. or Discovery Global or both.
- A combined approach in which Warner Bros. would merge with another sustainable venture and then take its way out by spinning off Discovery Global to its shareholders.
Why the Leadership Is Engaging Second-Party Interests
This action comes as the Company is engaged in further broadening HBO Max and reinforcing studio operations.
Zaslav, the widely known Chief Executive Officer of the company, confessed to outside interest:
"It's no surprise that significant value from our portfolio is now gaining more and more recognition by others in the market. After interest from multiple parties, we have started a full review of pieces of strategic alternatives to find out the best path to realize our assets' full worth."
While reiterating the commitment to the process, Samuel A. Di Piazza, Jr., Chair of the Board, pointed out that "our decision to initiate this review underscores the Board's commitment to considering all opportunities to determine the best value for our shareholders." He also suggested that the Board holds strong belief regarding the merits of the planned separation, but that a broader examination of options would serve the interests of the company well.
What Comes Next
There has been no guideline set for Warner Bros. Discovery as to when this review will be completed. In addition, the company has clarified that there can be no guarantee that any transaction will come through this process, apart from the separation already in motion. The WBD does not intend to provide any further announcement until a specific course of action has been approved.
The company has enlisted Allen & Company, J.P. Morgan, and Evercore to serve as financial advisors, with Wachtell Lipton, Rosen & Katz, and Debevoise & Plimpton LLP as their legal representatives to navigate through this process.
