Warner Bros. Discovery (WBD) is set to make a big announcement before the end of the year. According to CNBC’s Alex Sherman, the media giant, which had planned to split in 2026, will announce by Christmas if it will go through the separation, sell certain assets, or be bought out entirely.
Several scoops here:
WBD is prepping a Christmas-time announcement regarding the future of the company (Spin/sale/both).
I obtained a letter Paramount sent to the WBD board on Oct. 13 explaining why its $23.30-per-share bid is superior to WBD’s split.https://t.co/gkLVgYtTIz— Alex Sherman (@sherman4949) November 5, 2025
Meanwhile, Paramount Skydance has become increasingly aggressive in urging WBD’s board not to split the company, but to sell it as a whole instead. It’s already made a $23.30-per-share bid, which they argue in a letter “delivers superior value” to shareholders.
A Strategic Split
In June, WBD said in a press release they intended “to separate the company, in a tax-free transaction, into two publicly traded companies, enabling each to maximize its potential.” One part, Warner Bros. Streaming and Studios, would handle film production and distribution. The other, Discovery Global Networks, would consist of its cable and news programming and networks. The split was scheduled to be finalized by April 2026.
Warner Bros Discovery Logo
At the time, WBD CEO David Zaslav made it sound like a strategic move. As as cable revenues continue to decline and streaming grows increasingly dominant, the 2022 merger of Warner Bros. and Discovery was looking more like a major miscalculation that had buried it under tens of billions in debt. However, insiders suspected that the proposed WBD split was designed to make it more appealing to potential buyers.
Comcast/Universal and Netflix were considered the most likely to show interest. That the first move was made by the newly formed Paramount Skydance came as a surprise. But it was enough to excite investors, with shares soaring by 33%, briefly pushing the company’s market cap close to $30 billion.
If Zaslav had been hoping for a bidding war, as many suspected, it worked.
Bidding War
So far, Zazlav has rejected three bids from Paramount Skydance, presumably waiting for better offers. It may be working. In the latest quarterly earnings call on October 30, Comcast Co-CEO designate Mike Cavanagh said, “You should expect us to look at things that are trading in the space around our industry. It’s our job to try to figure out if there are ways to add value.”
Netflix Co-CEO Greg Peters in an interview with Bloomberg – YouTube, Bloomberg Live
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The same day, Reuters reported from anonymous sources that Netflix hired the same bank that Skydance used in its acquisition of Paramount as the streamer explored making a bid for WBD. A week earlier, Netflix co-CEO Ted Sarandos claimed that his company had “no interest in owning legacy media networks.” Whether he was bluffing, or the idea of owning WBD properties like DC Studios proved irresistible, is open to speculation.
Paramount Skydance CEO David Ellison being interviewed – YouTube, CNBC Television
That Paramount Skydance is doing everything in its power to fend off other suitors is undeniable. Its series of letters to WBD board members arguing its case for a sale before the split is only Paramount Skydance’s first line of attack. According to Sherman’s sources, “if WBD stalls in its decision or decides to move in a different direction, Paramount has discussed taking an offer directly to shareholders and formalizing a hostile bid for the company.”
Christmas Countdown and Red Tape Ahead
With WBD signaling that a final decision won’t come until closer to Christmas, all parties still have time to make their best offers. If WBD accepts a full buyout, the deal will likely face regulatory hurdles—especially if Paramount Skydance or Comcast Universal comes out on top.
WBD CEO David Zaslav Speaks at a New York Times event – YouTube, New York Times Events
Which way do you think this Warner Bros. sale is going to go? Would you want Paramount Skydance to own WBD, or would you rather see it go to Netflix or Comcast? Let us know in the comments!
