Warner Bros. Discovery (WBD) has reportedly asked potential buyers to submit improved offers for the company’s assets after an initial round of bidding last week.
The company received bids from Paramount Skydance, which aims to buy WBD outright, and from Comcast and Netflix, which would acquire only its film studio and streaming businesses. A second round of bids is due 1 December, Bloomberg and Reuters reported.
WBD initially planned to split into two separate companies by mid-2026, but said in October it would evaluate its options.
“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,” WBD CEO David Zaslav said at the time.
WBD has asked that second-round bids be higher than initial offers, per Variety.
It could begin exclusive negotiations with one potential buyer after reviewing the next round of offers, according to Bloomberg.
Paramount Skydance has so far bid four times for WBD, and is reportedly the White House’s preferred buyer. WBD rejected its initial three offers, including one at US$23.50 per share, for being too low.
Comcast and Netflix are seeking to buy WBD’s streaming and film studio assets, including Warner Bros. Motion Picture Group and HBO.
Under WBD’s proposed split, its streaming and studios portfolio would be separated from its cable TV assets, like CNN. The two new companies would both be publicly traded.
WBD has $34.5 billion in gross debt, with much of this stemming from the merger between Warner Bros. and Discovery in 2022. It has also struggled to stay profitable since the merger, posting a net loss of $148 million last quarter.
Warner Bros. Discovery’s (NASDAQ: WBD) share price ended after-hours trading at $23.04, following a close at $22.96. Its market capitalisation is $56.89 billion.
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