After “multiple parties” made unsolicited bids to purchase the company, Warner Brothers Discovery, the US media giant that includes HBO, CNN, and other networks, announced that it is thinking about selling.
To determine the “best path… to unlock the full value of our assets,” the board will examine its alternatives in light of the proposals, according to CEO David Zaslav. Following the announcement, shares increased by over 8%, paving the way for a possible bidding war for the company.
Companies reportedly interested in an acquisition include Paramount Skydance, founded by David Ellison. In response to pressures from the growth of streaming and the fall in traditional pay TV viewership and advertising, the media business has been rapidly consolidating.
Just three years ago, Warner Media, then a division of AT&T, merged with Discovery, the owner of networks like HGTV and the Food Network, to form Warner Brothers Discovery. However, the transaction left the business significantly indebted. Additionally, it has been losing money. Mr Zaslav stated earlier this year that he was getting ready to divide the company, separating its streaming division from its conventional cable networks.
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