Warner Bros. Discovery explores sale

One of the top American studios, Warner Bros. Discovery (WBD), announced it is reviewing buyout interest from several parties—putting CEO David Zaslav in a tough spot as he battles to keep the company independent.

The move follows weeks of merger rumors and reports of a possible split into two entities: one for HBO Max and Warner Bros. studios, and another for TV networks like CNN and TNT.

The Tuesday announcement pushed WBD shares up 11%, while Paramount stock fell 3%.

Paramount—led by David Ellison after its $8 billion July merger with Skydance, and backed by his father Larry Ellison (the world’s second-richest man)—has made multiple attempts to acquire WBD.

However, WBD has rejected the interest, stating Paramount’s offers undervalue the company.

Analysts say other potential suitors could include Amazon, Apple, Comcast, and Netflix, though some face regulatory or strategic hurdles.

Despite heavy debt and recent challenges, WBD’s studio and streaming units are performing strongly. It had 126 million global subscribers in Q2.

Media experts say Paramount has a strong chance in the potential merger. It would give the company much-needed scale against declining cable viewership and intensifying streaming competition. Paramount+ had 77.7 million subscribers in the second quarter.