Chief exec David Zaslav confirms strategic review to explore options, noting ’unsolicited interest from multiple parties’
Warner Bros Discovery (WBD) is exploring a sale of the company and splitting up the business, chief exec David Zaslav has confirmed.
The company has initiated a review of “strategic alternatives to maximise shareholder value”, it said today, noting “unsolicited interest” from “multiple parties” for both the entire company and Warner Bros.
As news of the potential sale emerged, WBD’s stock rose 10% to $20.14 a share.
WBD, which is in the midst of separating into streamer and studio arm Warner Bros. and networks-focused Discovery Global, said its board were evaluating options including selling off portions of the business or the company in its entirety.
It is also considering an “alternative separation structure” that would enable a merger of Warner Bros. and spin-off of Discovery Global to its shareholders.
The future of WBD has been unclear for several months with David Ellison’s Paramount Skydance having a $20-per-share offer for WBD rebuffed earlier this month, according to Bloomberg.
Other suitors rumoured to be in the running have included NBCUniversal owner Comcast and Netflix, although the latter’s co-chief exec Greg Peters distanced his company from reports earlier this month.
Zaslav said: “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.”
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” added Samuel A. Di Piazza, Jr., chair of WBD’s board of directors.
“We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
WBD said no deadline or timetable had been set for completion of the strategic alternatives review process, adding that all options remained open.
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