Management confirms that Warner Bros Discovery (WBD) is officially up for sale. Paramount, NBCUniversal, Amazon, Apple and Netflix have reportedly all shown interest.
Imagine the two iconic film studios Warner Bros and Paramount – each with over 100 years of history – under the same roof.
Or imagine Netflix acquiring both Warner Bros and HBO.
Those are just two of the scenarios currently being discussed in Hollywood, and now protagonist itself has confirmed that multiple parties showed interest in a potential acquisition even before the official "for sale" sign went up.
Paramount has made offers
It has emerged in Hollywood that Paramount, which recently merged with Skydance, has made at least three offers, the latest being around 50 billion dollars, which WBD has rejected. As early as December 2023, there were rumors of a merger between the two studios.
- "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 commenting on the rumors.
In other words, WBD will evaluate acquisition offers. No deadline has been set for the process, and WBD will not comment further until the board approves any potential offer, the company said.
If it happens, iconic franchises such as Star Trek, South Park and Mission: Impossible would come under the same roof as Harry Potter, Lord of the Rings, Dune, Game of Thrones and DC Comics.
Disney acquired 21st Century Fox in 2019. Back then, the so-called Big-6 film studios became the Big-5. Another merger would reduce old Hollywood to the Big-4. In the meantime, however, Amazon, Apple and Netflix have each established their own movie studio.
Netflix responds
Netflix has also been rumored as a potential buyer of the Warner Bros film studio and HBO.
Netflix co-CEO Ted Sarandos responded to the rumor by denying that the company is interested in acquiring WBD, though he did not comment on whether Netflix might consider acquired parts of WBD, such as HBO.
- "We've been very clear in the past that we have no interest in owning legacy media networks," Sarandos said during the company’s third-quarter earnings call. "There is no change there."
Universal’s parent company, Comcast, is also reported to be interested. Zaslav claims that Amazon and Apple have shown interest in acquiring parts of WBD as well.
Warner and Discovery to split regardless
The dance around Warner Bros has begun, following the failed merger between Warner Bros and Discovery as companies and streaming services. HBO Max was renamed Max, only to later revert back to HBO Max again.
That merger will be undone regardless. WBD will be split into Warner Bros (including HBO Max) and Discovery Global (broadcast networks). The separation will be completed by mid-2026 at the latest, unless parts of WBD are sold off before, according to a press release.
- Source: WBD, Bloomberg
