First bids for Warner Bros. Discovery due today; Netflix, Comcast, Skydance in the mix

Warner Bros. Discovery (WBD) has intensified its hunt for bidders as the first-round deadline closes today (November 20). The company—home to DC films, HBO, CNN, TNT and Warner Bros. Games—is exploring a sale of its studio and streaming assets to counter financial strain, declining traditional TV revenues and intensifying streaming competition.

According to Variety, the board will evaluate offers before Thanksgiving, with the process expected to conclude by year-end.

According to Wall Street research firm MoffettNathanson, the standalone Warner Bros. business is estimated to have an enterprise value of $44 billion, and separating streaming and studio assets from WBD’s TV networks could unlock greater value.

Paramount Skydance

The American media conglomerate has reportedly offered a deal structured as 80% cash and 20% stock. However, WBD rejected the $23.5 per share offer and has pushed for approximately $30 per share.

Skydance CEO David Ellison, who describes his company as the “best dance partner” for WBD, argues a merger could create a large-scale entertainment powerhouse.

Netflix

Netflix co-CEOs Ted Sarandos and Greg Peters are actively exploring a bid. The streaming giant has engaged Moelis & Co., the same investment bank that advised Skydance’s bid for Paramount.

Netflix has indicated that, if it acquires WBD’s studio assets, it will continue theatrical releases and is not interested in purchasing WBD’s cable networks, including CNN, TNT, Food Network and Animal Planet.

Backed by a $470+ billion market cap and cash reserves of $9.3 billion, any Netflix offer is expected to be all-stock.

Comcast

As Comcast prepares to split off its cable division, CEOs Brian Roberts and Mike Cavanagh see strategic upside in combining HBO Max with Peacock and integrating WBD’s studios with Universal, creating broader streaming and content synergies.