Warner Bros. Discovery (WBD) announced today in a note to its investors that it’s considering potential acquisitions as an alternative to its proposed plan to split into two different companies. This is apparently due to receiving multiple offers from outside companies for both the entire company and for Warner Bros. as a standalone entity, and the company is currently exploring both full acquisitions and alternate separation structures.
In the note, the company notes that it’s considering these offers to maximize benefit to shareholders, “in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.” It’s considering multiple options, one of which would “enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders.”
David Zaslav, WBD’s CEO, said in the note, “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.”
Warner Bros.’s gaming division has had a checkered history. On the one hand, it has seen great success with titles like Hogwarts Legacy and the Mortal Kombat series. On the other, it’s seen disappointments like Suicide Squad: Kill the Justice League and the canceled Wonder Woman game, which allegedly led to the closure of Monolith. At present, it seems that the games business would be parceled with Warner Bros.
In the note, WBD said that it is not in any hurry to complete this review, and that it will make a separate announcement if it approves a specific transaction. One of the companies rumored to be offering for WBD is Paramount Skydance, though neither company has confirmed this publically. GamesBeat has reached out to WBD for comment.