Warner Bros Considers Sale of Studios; Netflix, Comcast Reportedly in Talks

Warner Bros. Discovery Inc. has launched a comprehensive review of strategic alternatives following unsolicited interest from multiple parties in acquiring all or parts of the company, according to a statement released on October 21, 2025. The media conglomerate, formed by the 2022 merger of WarnerMedia and Discovery, is evaluating options that include proceeding with a planned corporate split by mid-2026, a full company sale, or separate transactions for its Warner Bros. studios and Discovery Global units. Chief Executive Officer David Zaslav emphasised that the process aims to "unlock the full value of our assets," with no set timeline for decisions. Financial advisors Allen & Co., JPMorgan Chase & Co., and Evercore are assisting the board in this evaluation. Shares of Warner Bros. Discovery surged 9% in New York trading on Tuesday morning amid the news, reflecting investor optimism about potential deals.

Among the contenders expressing interest are streaming giant Netflix Inc. and cable behemoth Comcast Corp., sources familiar with the discussions said, speaking on condition of anonymity. Netflix, led by co-CEO Ted Sarandos, has shown particular enthusiasm for Warner Bros.' movie and TV studios, including its vast content library and film production facilities, though it has no appetite for traditional TV networks. No formal offer has been submitted by Netflix. Comcast, the parent of NBCUniversal, is conducting due diligence on the studios but has also refrained from making a bid at this stage; a spokesperson declined to comment.

Separately, Paramount Global—recently aligned with Skydance Media under David Ellison—has pitched at least one full-company offer, which was rejected as undervalued, with bids reportedly below $30 per share. Paramount has explored joint approaches with Apollo Global Management, which holds stakes in Warner franchises via Legendary Entertainment. These early-stage talks underscore a competitive landscape for Warner's assets, as legacy media firms grapple with streaming disruptions.

The strategic review comes against a backdrop of Warner Bros. Discovery's turbulent post-merger history, marked by aggressive cost-cutting, layoffs, and repeated asset sales under Zaslav's leadership. The company had already announced plans to separate its declining cable networks—such as CNN and TNT—from its high-growth streaming and studios operations, including HBO Max, to attract premium valuations. Board Chairman Samuel Di Piazza affirmed that the split remains viable and "will create compelling value", but the influx of external interest prompted a broader scope to maximise shareholder returns. Analyst Ross Benes of eMarketer noted that Warner "was created through M&A and hopes to exit via M&A," though past deals have eroded value and triggered workforce reductions. Despite these challenges, Warner's studios boast iconic franchises like DC Comics and Harry Potter, alongside a robust production pipeline, making them attractive to buyers seeking content scale in a consolidating industry.

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A successful sale could profoundly reshape Hollywood, potentially shrinking the roster of major studios and accelerating streaming mergers at a time when traditional TV viewership wanes. While big tech players like Apple have been speculated as suitors, no concrete involvement has surfaced. Zaslav's optimism hinges on isolating the studios' worth from cable's drag, but experts caution that deal execution will test regulatory hurdles and integration risks. As talks progress without deadlines, the outcome—whether a full breakup or targeted divestitures—will signal broader media trends toward efficiency amid digital upheaval. Warner Bros. Discovery's pivot highlights the sector's Darwinian evolution, where adaptability determines survival.

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