Warner Bros. Discovery Eyes Christmas Deadline for Split or Sale Decision

by

Warner Bros. Discovery is expected to reveal its future plans before the end of the year. CNBC’s Alex Sherman reports that the company, which previously considered a 2026 split, will decide by Christmas whether to separate its businesses, sell some of its holdings, or potentially be acquired by another company.

Several scoops here:

Warner Bros. Discovery is planning to announce its future plans – potentially a spin-off, a sale, or both – around Christmastime. I’ve seen a letter from Paramount, dated October 13th, that details why their offer of $23.30 per share is better than Warner Bros. Discovery’s proposed split.

— Alex Sherman (@sherman4949) November 5, 2025

Paramount Skydance is strongly encouraging Warner Bros. Discovery’s board to avoid a company split and instead consider a full sale. They’ve already offered $23.30 per share and, in a recent letter, stated this offer would provide better returns for shareholders.

A Strategic Split

Warner Bros. Discovery (WBD) announced in June that it plans to divide into two separate, publicly traded companies. This move, intended to allow each business to thrive, is structured as a tax-free transaction. One company will focus on film and streaming, known as Warner Bros. Streaming and Studios, while the other, Discovery Global Networks, will cover cable and news programming. WBD expects to complete the separation by April 2026.

Looking back, Warner Bros. Discovery CEO David Zaslav initially presented the merger as a smart play for the future. He talked about cable losing ground and streaming taking over, but honestly, it’s starting to feel like the 2022 merger of Warner Bros. and Discovery was a huge mistake – it’s left the company with a mountain of debt, we’re talking tens of billions. From what I’ve heard from people in the know, the talk about splitting WBD wasn’t about improving the company, but about making it look good for a potential sale.

Most analysts expected Comcast/Universal or Netflix to make a deal. However, it was surprising when Paramount Skydance made the first offer. This news energized investors, causing the company’s stock price to jump 33% and briefly raising its market value to nearly $30 billion.

If Zaslav had been hoping for a bidding war, as many suspected, it worked.

Bidding War

So far, Warner Bros. Discovery CEO David Zaslav has turned down three offers from Paramount and Skydance, likely hoping for more favorable deals. This strategy could be paying off. During an earnings call on October 30th, Mike Cavanagh, who is set to become co-CEO of Comcast, indicated the company is actively exploring potential acquisitions within the media industry to find opportunities for growth.

On the same day, Reuters reported, citing unnamed sources, that Netflix had engaged the same financial institution Skydance used to buy Paramount, suggesting Netflix was considering a bid for Warner Bros. Discovery (WBD). This came just a week after Netflix’s Ted Sarandos stated his company had “no interest” in acquiring traditional media networks. It’s unclear whether Sarandos was being untruthful, or if the possibility of owning WBD assets like DC Studios ultimately proved too appealing to pass up.

It’s clear that Paramount Skydance is strongly trying to prevent other companies from making a competing offer. Their recent letters to Warner Bros. Discovery’s board, explaining why a sale should happen before the company splits, are just the first step. Sources say that if Warner Bros. Discovery delays a decision or chooses a different path, Paramount is prepared to make a direct offer to shareholders and launch a hostile takeover bid.

Christmas Countdown and Red Tape Ahead

Since Warner Bros. Discovery (WBD) hasn’t made a final decision until around Christmas, potential buyers still have time to improve their offers. If WBD agrees to be completely bought out, the deal will probably require approval from regulators, particularly if Paramount Skydance or Comcast Universal wins the bid.

Read More

2025-11-06 01:56