Warner Bros. Discovery (WBD) Stock Soars as Bidding War Heats Up

TLDR

• Warner Bros. Discovery announced it’s reviewing strategic options including a potential sale after receiving unsolicited interest from multiple parties
• The stock surged 10% on the news, trading around $20.33 and extending year-to-date gains to roughly 75%
• WBD’s board rejected a Netflix-backed Paramount Skydance bid of nearly $24 per share, calling it too low
• Netflix and Comcast are among the companies reportedly interested in acquiring all or part of WBD
• The company still plans to proceed with its previously announced split into two separate entities while exploring all options

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Warner Bros. Discovery made waves Tuesday when it confirmed what Wall Street had been whispering about for weeks. The company is officially open to a sale.

The media giant announced it’s expanding its strategic review after fielding acquisition interest from multiple suitors. Shares jumped 10% on the news, closing around $20.33.

Warner Bros. Discovery, Inc., WBD

The stock has been on a tear this year. WBD is up roughly 75% since January, a rally fueled by improved streaming numbers and merger speculation.

But here’s where it gets interesting. WBD’s board already turned down one offer.

Reuters reports the company rejected a Netflix-backed bid from Paramount Skydance worth nearly $24 per share. That would have valued WBD at roughly $60 billion.

The board called it too low. That rejection sparked even more interest from other potential buyers.

The company owns HBO Max, CNN, DC Comics properties, and the Harry Potter and Game of Thrones franchises. That’s a lot of intellectual property for buyers to drool over.

Multiple Suitors Enter the Picture

Sources told CNBC that Netflix and Comcast are among the interested parties. Both companies declined to comment on the reports.

Netflix’s interest is particularly curious. The streaming giant typically avoids legacy media assets.

But sources say Netflix doesn’t want WBD going to a competitor at a bargain price. That’s classic strategic positioning.

Comcast owns NBCUniversal and already competes with WBD in both streaming and cable. Sources close to Comcast told CNBC the company will look at the possibility but doesn’t feel pressured to make a deal.

The process remains wide open. WBD said it will consider everything from an outright sale to its original plan to split into two companies.

That split announcement came earlier this year. WBD planned to separate its streaming and studio business from its cable networks division by mid-2026.

The company says it’s still moving forward with that plan while reviewing other options. Smart move to keep leverage in negotiations.

The Financial Reality Behind the Drama

WBD’s situation is complicated by its balance sheet. The company carries about $35 billion in debt.

That massive debt load came from the 2022 merger of WarnerMedia and Discovery Inc. It’s been a millstone around the company’s neck ever since.

Management has made progress on debt reduction. WBD plans to cut its debt to roughly $30 billion by year-end.

But that’s still a hefty number for any potential buyer to absorb. It could limit how much companies are willing to pay.

The business itself shows mixed results. Streaming is finally turning profitable.

WBD added 3.4 million new global subscribers in Q2 2025. The streaming segment posted a profit of $293 million, compared to a $107 million loss a year earlier.

Theatrical releases have helped too. “The Minecraft Movie” became a major hit, boosting studio revenues 55% in Q2.

The problem is traditional cable. Network revenues fell 9% year-over-year in Q2 as cord-cutting continues.

WBD earned $0.63 per share in Q2, beating analyst expectations. But one strong quarter doesn’t erase the structural challenges in legacy TV.

Analysts remain split on the stock. Bank of America values WBD at roughly $30 per share under an acquisition scenario.

WBD’s next earnings report comes November 6. Investors will be watching for updates on the strategic review and Q3 streaming growth.

For now, the company is playing its cards close to the vest. WBD said it has no set deadline and no certainty a deal will happen.

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