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Explainer: The bidding war for Warner Bros. Discovery
Entertainment juggernaut Warner Bros. Discovery (WBD) could soon be split, sold, or both, with the bidding war heating up as 2025 comes to an end. The company, which includes HBO and CNN as well as Warner Bros.’ film and TV assets, said in June that it would separate into two businesses by mid-2026. Paramount Skydance has offered multiple times to buy the company outright, and reportedly submitted another bid on Thursday. Comcast and Netflix have also reportedly offered to buy WBD's film studios and streaming segment. In October, WBD said it would evaluate a range of strategic options, and initial bids are due by 20 November. WBD hopes to complete the auction process by the end of the year, the Wall Street Journal reported. WBD’s current market capitalisation is US$56.70 billion, and its shares have risen 115% across 2025 to date.What's up with WBD?WBD has been carrying large amounts of debt, mainly due to the merger between Warner Bros. and Discovery three years ago. The company reported US$34.5 billion in gross debt last quarter, after having paid off just $1.2 billion during the period. As part of this, it has $16 billion in notional debt from Discovery stemming from a bridge loan. It has also struggled to tur
Entertainment
Warner Bros Discovery amends CEO package
Warner Bros. Discovery has changed the pay package of CEO David Zaslav to ensure he retains his stock options even if the company is sold, as the entertainment company considers various offers and restructuring options. Zaslav has agreed to changes to his tenure and non-qualified stock option agreements, extending his agreement to December 2030 if there is a "change in control" but excluding any sale of its Discovery Global television business or all or substantially all of its assets. This comes as the company reportedly assesses offers from Paramount Skydance for the whole company and from Netflix and Comcast for its studios and streaming operations, at the same time as it also considers a separation of its businesses. In a Securities and Exchange Commission filing, Warner Bros. Discovery said it was clarifying that Zaslav’s employment agreement applied in the event of a ‘reverse spinoff’ before 31 December 2026, in which the Discovery Global television networks and entertainment, sports and news brands, including CNN become a separate company. This would leave Warner Bros as the remaining company with its film studio and streaming businesses. originally, Warner Bros was to be spun off as an independent company wi
Entertainment
Sony raises annual forecast following second quarter
Sony has lifted its annual guidance after posting double-digit growth for Q2 on the back of strong performance in its music and image sensor businesses. The media conglomerate reported operating income of JPY429 billion (A$4.25 billion), marking a 10% increase from the same time last year. Revenues rose by 5% to JPY3.108 trillion. The increases were driven by the company’s music and imaging businesses, which rose by 27.65% to JPY115.4 billion and 50% to JPY138.5 billion, respectively. This offsets the drop in sales in the gaming and network services division, which fell by 13.26% to JPY120.4 billion. Despite the drop, the gaming division was still the company’s biggest driver in revenue. While KPop Demon Hunters became the most popular film ever on Netflix and continues to break streaming records for both the film and original soundtrack, its picture business shrank by about 2.75%. Despite Sony being behind the animated film, it didn’t reap benefits due to selling the film’s exclusive rights to Netflix. While exact details of the deal are unknown, it was reported that Sony made an initial $25 million profit from producing the film for Netflix. The film gave Netflix a significant boost in viewership and c
Entertainment
Paramount-Skydance falls short on revenue post-merger
Paramount Skydance missed revenue estimates last quarter in its first earnings report as a merged company, but said it will increase its investment in streaming, film, and television. Revenue was US$6.70 billion, down year-over-year from $6.73 billion and below LSEG estimates of $6.97 billion. It posted a net loss of $257 million, compared with net earnings of $1 million one year ago. “In the first 100 days, we have taken significant steps to align our business around our North Star priorities: 1) investing in our growth businesses anchored by our creative engines and exceptional storytelling; 2) scaling our direct-to-consumer business globally; and, 3) driving efficiency enterprise-wide with a focus on long-term free cash flow generation,” wrote Paramount Skydance CEO David Ellison in a letter to shareholders. “True to our mission as a creative company, we are committed to increasing our creative output with more high-quality films, TV series, sports, news, and games to growing audiences worldwide.” Direct-to-Consumer revenue was $2.17 billion, rising from $1.86 billion. Paramount+, the company’s streaming service, saw subscribers rise to 79.1 million, from 71.9 million one year ago, and represented $1.77 billion of t
Entertainment
Netflix eyes bid for Warner Bros Discovery unit
The entertainment industry faces a big shakeup with Netflix reportedly exploring a potential takeover bid for Warner Bros. Discovery’s studios and streaming operations. Video streaming giant Netflix has hired investment bank Moelis & Co to evaluate a prospective offer for this part of the global media and entertainment company, according to Reuters. “Sources say Netflix has been granted access to Warner Bros. Discovery’s financial data room, suggesting discussions have reached an advanced exploratory phase,” Reuters reported in this exclusive article. Moelis & Co also advised Skydance Media on its recent takeover of Paramount Global. Warner Bros. Discovery recently disclosed it was assessing an unspecified number of unsolicited takeover proposals, including three that it rejected as too low from Paramount Skydance. It is also weighing up whether to split itself into separate film, television and streaming units from its legacy cable networks such as CNN, TNT, and Food Network. Warner Bros' studio business includes iconic Hollywood franchises such as Harry Potter and DC Comics, and produces many of Netflix's hits, including Running Point, You and Maid. CEO Ted Sarandos said last week Netflix considered acquisit

Entertainment
Warner Bros. considers selling whole company
United States media conglomerate Warner Bros. Discovery said it is considering putting the entire company up for sale after “multiple parties” made unsolicited offers to buy. This comes after the company initially said it would split Warner Bros and Discovery after they were merged in 2022, but is now considering a complete sale after receiving interest. "It's no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Warner Bros. Discovery president and CEO David Zaslav said. “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets." The company’s Board of Directors has initiated a review of whether selling the company as a whole or splitting it would have greater shareholder value. A sale or split of the company could cause a shake-up in the media industry and potentially prompt other legacy media houses to revisit their own structures. It has been reported that players like Paramount Skydance owner David Ellison are interested in the acquisition. Ellison was reported to be in talks to acquire the combined business before
Entertainment
Trump renews threat to tariff foreign-made films
United States President Donald Trump has renewed his threat to add a 100% tariff on films made outside the U.S., as he continues to announce sweeping new tariffs. Trump previously said the U.S. would impose tariffs on films in May. He has not offered details on how this would be implemented. “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” wrote Trump on Truth Social. “Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.” Global film and television production spending increased by US$16.2 billion in 2024 after the 2023 strikes by U.S. actors’ union SAG-AFTRA and the Writers Guild of America, according to a ProdPro report. Spending fell below pre-strike levels in the year’s second to fourth quarters, however. Production spending in the U.S. dropped by 26% from 2022 to 2024. California raised its film tax credit from $330 million to $750 million in July, in a bid to encourage film production in the state. The U.S. film industry reported a $15.3 billion trade surplus in 2023, including a positive trade balance in eve
Entertainment
US sues Ticketmaster for illegal ticket resale methods
The United States Federal Trade Commission (FTC) and seven states have sued Live Nation and its parent Ticketmaster for working with brokers who illegally buy and resell tickets. The suit alleges that Live Nation and Ticketmaster coordinated with brokers buying large amounts of tickets, and then resold these tickets “at a substantial markup”. The FTC also argued that these companies advertised deceived consumers by advertising lower ticket prices than buyers could pay. “American live entertainment is the best in the world and should be accessible to all of us. It should not cost an arm and a leg to take the family to a baseball game or attend your favourite musician’s show,” said FTC Chair Andrew N. Ferguson. The states suing alongside the FTC include Illinois, Virginia, Florida, Tennessee, Colorado, Nebraska, and Utah. According to the suit, Ticketmaster has charged consumers hidden fees on every ticket sale, which can represent as much as 44% of the ticket price. “In Ticketmaster’s own words, Defendants have taken a ‘bait and switch approach’ to advertising ticket prices, employed specifically to create a ‘lift’ in ticket sales,” the lawsuit said. Ticketmaster and Live Nation also knowingly allow brokers to exceed
Entertainment
GameStop posts turnaround on collectables pivot
Efforts to revive its struggling business, evident within Texas-based GameStop Corp’s (NYSE: GME) 22% rise in second-quarter FY25 revenue on Tuesday (Wednesday AEST), saw shares in the video-game retailer and original meme stock trade 4% higher overnight. Drawing gaming fans with demo units set up with the latest releases, GameStop sells new and used video games, consoles, and accessories, as well as pop culture merchandise. Marking the company’s 5th straight quarterly profit, the second quarter result came as welcome relief for long-suffering shareholders who have witnessed market share in the once dominant force in physical retail erode in recent years. Due to the pivot towards e-commerce giants as go-to destinations for gaming and general merchandise, the company has struggled to generate demand over the last six years, dropping by around 11.2% annually. By comparison, this quarter GameStop reported robust year-on-year revenue growth of 21.8%, and its US$972.2 million of revenue topped Wall Street estimates by 18.1%. Earnings per share (EPS) ended up at $0.25 per share, also up on consensus estimates of $0.19 per share. Net income was US$168.6 million, up from US$14.8 million for the previous year’s second qu