Warner Bros Discovery has received preliminary buyout bids from Paramount Skydance, Comcast and Netflix, a source familiar with the matter said on Thursday, opening the door to a potential sale of the century-old Hollywood studio.
The bids mark the start of a major consolidation fight that will shape the future of HBO, the Warner Bros film library and the DC Comics universe. Paramount is expected to bid for the entire company, including its cable networks, backed by billionaire Oracle co-founder Larry Ellison.
Comcast, which owns NBCUniversal, and Netflix are each interested in the studios and streaming businesses, and if WBD’s board went with them, would either need to spin the linear channels into their own company, or find another buyer for them.
A deal would expand Paramount’s theatrical footprint and bolster its streaming service by combining HBO Max with Paramount+.
Reuters exclusively reported that Warner Bros Discovery’s board rejected a mostly cash offer of nearly $24 a share, valuing the company at $60 billion, and said it would consider strategic options.
HBO, whose franchises—including Superman and Batman—would strengthen its streaming, theatrical and theme-park businesses.
Netflix is also courting Warner Bros' studio and streaming businesses, aiming to gain access to Warner Bros' extensive film library and established entertainment franchises, such as "Harry Potter" and "Lord of the Rings". Warner Bros Discovery previously announced plans to split into two publicly traded companies, separating its studios and streaming business from its fading cable networks.
The company has already announced plans to split into two publicly traded entities, separating studios and streaming from its declining cable networks.
The New York Times first reported the developments.
Warner Bros Discovery did not immediately respond to Reuters' request for comment.