Warner Bros. Discovery Rejects Third Bid from Paramount

LOS ANGELES, CA — Warner Bros. Discovery Inc. (WBD) has rejected three acquisition offers from Paramount Skydance Corp., with the latest bid coming in at just under $24 per share. Sources reported on Wednesday that the offer was largely cash-based, comprising 80% of the total.

WBD, which has recently faced increasing buyout interest, confirmed on Tuesday it received “unsolicited interest” from multiple parties and announced plans to review all bids. The company’s stock responded favorably, increasing nearly 12% the day of the announcement.

David Zaslav, CEO of Warner Bros. Discovery, stated, “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market.” He added that the company is actively exploring strategic alternatives to maximize the value of its assets.

The board previously dismissed a $24 per share bid, indicating they believe the company is worth at least $30 per share, given its extensive assets, including the popular streaming service HBO Max and major film franchises.

Reports suggest that Paramount’s CEO, David Ellison, is preparing a fourth bid, which could be publicly announced soon. This ongoing tension follows a series of negotiations where Ellison has been rebuffed in his attempts to acquire WBD.

Warner Bros. is also undergoing a significant restructuring, planning to split into separate entities for its streaming and studios business and its cable networks. This separation is aimed at enhancing operational efficiency and unlocking shareholder value.

Analysts believe that this reassessment and the potential for a sale could reshape the landscape of the media industry. Additionally, potential buyers like Comcast and Netflix have reportedly expressed interest, further intensifying the competitive bidding environment.

The dynamics of this acquisition process highlight the challenges media companies face in the evolving landscape shaped by streaming, where traditional cable networks are losing audience share. As negotiations continue, the price for WBD may keep shifting.