The WBD board rebuffed the offer, two people with knowledge of the matter told CNN last week. (File Photo) Warner Bros. Discovery (WBD), the parent company of CNN, has said it is reviewing “strategic alternatives” after receiving expressions of interest from several potential buyers, CNN reported on Tuesday.
In a statement, WBD said the review could lead to a sale of the entire company or a continuation of its current break-up plan.
Possible sale or split
The company’s board of directors has begun looking at a range of options, including:
- Selling the entire company,
- Proceeding with its existing plan to split into two separate units, or
- Considering a structure that merges Warner Bros. and spins off Discovery Global to shareholders.
The company’s CEO, David Zaslav, has been preparing to divide WBD into two parts one including HBO Max and the Warner Bros. film studio, and another covering CNN and other Discovery channels believing the businesses could be valued higher independently.
CNN reported that Paramount Skydance had earlier shown interest in buying WBD, but the company’s board rejected the initial offer. Two sources told CNN the proposal was considered too low.
Zaslav said the company’s assets were drawing more market attention.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” he said in the company’s statement.
“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.”
