Warner Bros. Discovery (WBD) has turned down three takeover offers from Paramount’s Skydance Media amid growing buyout interest, as reported by CNBC’s David Faber. Paramount’s latest bid approached just under $24 per share, with 80% of the offer in cash. This aligns with earlier estimates suggesting that any bid might range between $22 and $24 per share.
On Tuesday, WBD confirmed the rejection of the nearly $24 per share bid and disclosed that it has received “unsolicited interest” from multiple parties. Following this, the company announced that it would broaden its strategic review process to assess all incoming proposals. Simultaneously, WBD is continuing with its plans to split into two distinct entities: one focusing on streaming and studios and another on global networks.
Among the interested buyers are notable industry players such as Netflix and Comcast. WBD’s CEO, David Zaslav, noted the increasing recognition of the company’s portfolio value, stating that the company has initiated a thorough review of its strategic options to maximize the potential of its assets.
Following this news, WBD shares saw a significant increase, rising nearly 11% on Tuesday and continuing to show a slight additional uptick in market trading on Wednesday morning.
Comcast, which is the parent company of NBCUniversal owning CNBC, has plans for a spinoff involving Versant, which would become the new parent company of CNBC after the transition. The evolving landscape in media and entertainment reflects a dynamic marketplace where the value of key assets is being rediscovered, presenting exciting opportunities for both the company and its stakeholders.