Finance

Media giant Warner Bros. Discovery puts itself up for sale

Warner Bros. Discovery, the media company behind networks such as HBO and CNN, announced Tuesday that it is putting itself up for sale. The decision landed as the company has been weighing how best to position expensive legacy channels and costly streaming operations in a crowded media market. Management framed the move as a way to ensure shareholders can capture full value from the company’s collection of assets.

The announcement follows an earlier plan to split Warner Bros. Discovery into two separate public companies. One entity would concentrate on cable networks and traditional TV relationships while the other would run the streaming services and film studio operations. Executives have argued the separation would let each business pursue clearer strategies and attract the right kinds of buyers or investors.

Warner Bros. Discovery will continue to pursue that split even as it actively shops parts or all of the company around the market, the company said in a press release. The review is a broad evaluation of strategic alternatives meant to identify the best path forward to unlock the full value of the assets. That means management is keeping multiple options open while the teams work toward an orderly separation.

“We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward,” said President and CEO David Zaslav. “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.”

The company said the separation is expected to be finalized in mid-2026, giving corporate planners and potential bidders a clear timetable to work against. That timeline creates a window for buyers to place offers or for management to press ahead with the split if a sale is not the preferable route. Investors will watch whether bidding interest accelerates or whether the planned separation proceeds without a suitor.

“We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value,” Zaslav said. “We determined taking these actions to broaden our scope is in the best interest of shareholders.”

The company carried a market value north of $45 billion on Monday, though it also carries billions of dollars in debt on its balance sheet, a mix that complicates any transaction. Those liabilities mean buyers will need to assess not just the portfolio of brands and content but also how to handle leverage and long-term obligations. That combination of big-name assets and heavy debt is central to how any sale or split will be structured.

Potential suitors have emerged before: Paramount Skydance publicly expressed interest in September, according to earlier reports, though it sounds like those negotiations stalled in recent weeks. No binding agreement followed that initial interest, and the company’s review of strategic alternatives now widens the pool of possible outcomes. Observers say the field could include strategic buyers, financial buyers, or a decision to complete the planned two-company breakup.

For now, Warner Bros. Discovery is balancing the formal separation process with a market test to see whether selling, merging or another strategic move would deliver the most value. The coming months should reveal whether there is a buyer willing to take on the portfolio as a whole or whether management will press ahead with the split on its current timetable. Shareholders, employees and media rivals will be watching closely as steps toward mid-2026 unfold.