Netflix and Comcast Said To Be Interested In Buying Warner Bros.

Warner Bros. Discovery Inc. said it’s considering a possible sale after receiving unsolicited interest from multiple parties. Netflix Inc. and Comcast Corp. are among the companies weighing bids for parts of the media and entertainment company, according to people with knowledge of the matter.

Warner Bros.’ board will evaluate “a broad range” of options, including a planned split-up of the company by mid-2026, an outright sale or separate deals for its Warner Bros. and Discovery Global units, according to a statement Tuesday.

“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,” Chief Executive Officer David Zaslav said. Warner Bros. declined to comment on who the interested parties are.

Paramount Skydance Corp., the film and TV company led by David Ellison, has already made at least one offer for the whole company, Bloomberg has reported, and was rebuffed for being too low. CNBC reported that Paramount had made multiple bids below $30 a share, all of which were rejected.

Warner Bros. shares jumped as much as 12% on Tuesday in New York. The stock has climbed to about $20 from $12 since initial reports of Paramount’s interest emerged last month.

Warner Bros. has already been sold twice in the last decade as legacy media companies have struggled to contend with the rise of online competition. Zaslav merged Discovery and Warner Bros. to try and create a more robust competitor to Netflix, but the strategy hasn’t worked. A sale of all or part of the company would reshape Hollywood and the media industry, potentially consolidating major studios and combining or eliminating streaming services.

Earlier this year, Warner Bros. announced plans to split into two businesses, one focused on cable TV and the other on streaming and studios. The move is an attempt to unshackle its faster-growing streaming division, which includes HBO Max, from the declining cable networks like TNT and CNN.

Ellison, the son of Oracle Corp. Chairman Larry Ellison, is seeking to swoop in before a potential breakup of Warner Bros., while Zaslav believes he can get a hefty premium for his streaming and studios businesses once they’re separated from the cable channels, Bloomberg has previously reported.

Paramount has also discussed acquiring Warner Bros. with Apollo Global Management Inc., according to people familiar with the matter. The private equity company controls Legendary Entertainment, which owns a piece of several Warner Bros. franchises.

Paramount is fresh off a deal of its own after combining with Skydance Media in August. The merger is already having an effect on the newly combined company as Paramount plans to eliminate thousands of jobs in an effort to cut $2 billion in costs.

A spokesperson for Paramount declined to comment on any bids.

Big tech companies such as Netflix and Apple Inc. have often been mentioned by analysts as potentially interested buyers of Warner Bros. assets. But Apple’s top services executive, Eddy Cue, all but ruled out a deal, speaking on the podcast The Town. “I never say no to anything, but we’re not actively looking at buying any company of any size,” he said.

Netflix co-CEO Ted Sarandos has expressed interest in Warner Bros.’ studio, its large content library and its film production lot, according to a person familiar with the discussions. Netflix isn’t interested in owning TV networks, however.

Comcast, the parent of NBCUniversal, is also taking a look but hasn’t made a formal offer, according to people familiar with the matter, who asked not to be named discussing private talks. One of the largest cable-TV and broadband providers, Comcast has also been restructuring its film and TV businesses and has previously announced plans to divest networks including MSNBC, USA and CNBC. A spokesperson for Comcast declined to comment on a bid for Warner Bros.

Warner Bros. “was created through M&A and hopes to exit via M&A,” Ross Benes, an analyst at Emarketer, said in a note.

Bloomberg's Geetha Ranganathan reports.

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