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 turn a profit since the merger and posted a loss in the first and third quarters of 2025.
Last quarter, its net loss was $148 million, and revenue also dropped by 6% year-over-year. While this was partly because it had seen higher-than-usual revenue during the Paris Olympics last year, revenue sank across all segments, including a 16% fall in advertising.
With WBD’s planned split, the company would separate into Streaming & Studios and Global Networks businesses. Streaming & Studios would include film and TV studios like Warner Bros. Motion Picture Group as well as HBO, while Global Networks would host cable TV channels like CNN.
“It’s safe to assume that the majority of the debt is going to live with Global Networks and a smaller portion — but a not-insignificant portion — on Streaming & Studios,” said WBD CFO Gunnar Wiedenfels in June.
Paramount enters the picture
Paramount Skydance has been a persistent bidder for WBD, and on Thursday submitted its fourth offer to buy the company.
Its first bid, submitted in October, was for around $20 per share. WBD reportedly rejected this for being too low.
WBD also reportedly turned down two other Paramount Skydance bids, including a mostly cash offer of roughly $58 billion, or $23.50 per share.
Earlier in November, Paramount Skydance CEO David Ellison downplayed Paramount’s interest in a WBD acquisition, however.
“It’s important to know that there’s no must-have for us. We really look at this as buy-versus-build, and we absolutely have the ability to build to get to where we want to go,” Ellison said on an earnings call.
An acquisition by Paramount Skydance would unite two of the U.S.’ largest film studios, bringing Paramount Pictures and Warner Bros. under the same roof. Paramount Skydance also owns streaming service Paramount+ and TV network CBS.
Ellison has already forged positive relationships with U.S. regulators, having secured approval for Skydance’s merger with Paramount earlier this year, and is an ally of U.S. President Donald Trump. White House officials have internally discussed a preference for Paramount Skydance to buy WBD, according to The Guardian.
“They got on Trump's good side to get the Paramount deal closed so there's still some of that good will that they could use,” said Raymond James associate analyst Brent Penter.
While Variety reported this week that Paramount Skydance's newest bid would be as part of a consortium with sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, Paramount Skydance has denied this.
The other major players
After turning down initial offers from Paramount Skydance, WBD said last month that it would evaluate a range of strategic options, with companies including Comcast and Netflix reportedly interested in buying parts of its portfolio.
“It's no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. 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,” said WBD CEO David Zaslav.
Comcast reportedly submitted a bid for WBD's studio and streaming segments on Thursday, having hired Goldman Sachs and Morgan Stanley to weigh its options. Zaslav met with Comcast CEO Brian Roberts at the beginning of November, Semafor reported.
However, a Comcast purchase could face issues from U.S. regulators, as Trump has frequently criticised Roberts. The Federal Communications Commission opened a probe into Comcast’s relationships with its NBC TV affiliates in July after Trump alleged NBC’s journalism favoured Democrats.
Netflix has also reportedly bid for WBD’s studio and streaming units, and hired investment bank Moelis & Company. Both Netflix and Comcast were given access to the company’s financial data before bidding.
Netflix’s CEO, Ted Sarandos, has said it does not plan to acquire the company’s cable TV assets. “We've been very clear in the past that we have no interest in owning legacy media networks,” he said in October’s investor video. Netflix executives have committed to releasing WBD's films in theatres under its current contractual agreements, per Bloomberg.
While Apple had been asked about a potential offer for WBD’s components, it downplayed the possibility, and there have been no reports that it submitted a bid on Thursday. “You’ve got to look at Apple from a historical point of view. We don’t do a lot of major acquisitions,” said Apple senior vice president of services Eddy Cue earlier this month.
Azzet has contacted Warner Bros. Discovery for comment.
