Warner Bros. Discovery (NASDAQ:WBD) stock surged as much as 9% on Tuesday after the media and entertainment giant announced it has begun a formal review of strategic alternatives, spurred by unsolicited interest from multiple potential buyers.
The company said its board will explore several possibilities, including moving ahead with its existing plan to split into two separate media entities by mid-2026, selling the entire company, or pursuing individual transactions involving its Warner Bros. or Discovery Global divisions.
According to the announcement, the review follows interest from “multiple parties for both the entire company and Warner Bros.” The news adds weight to recent merger and acquisition speculation, including reports from September that Paramount Skydance Corp (NASDAQ:PSKY) was preparing a cash-heavy offer for the company.
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery.
The company reiterated that while it remains confident its planned split will create “compelling value,” the board concluded that broadening the range of strategic options is in the best interests of shareholders.
Warner Bros. Discovery also cautioned that the strategic review has no set timeline and may not result in any transaction beyond the separation already underway.