UPDATE: Warner Bros. Discovery has officially launched an urgent auction for its media empire, with JPMorgan and Allen & Co. facilitating bids from numerous potential buyers, including a significant offer from Paramount Skydance. This development comes after a crucial board meeting held this morning where executives discussed the auction process.
The auction is heating up as David Ellison, CEO of Paramount Skydance, has made three bids for Warner Bros. Discovery, with the latest proposal reaching $56 billion or $23.50 per share. However, current CEO David Zaslav has rejected these offers, aiming to ignite a bidding war that could push the sale price well above $25 per share.
Insiders report that Zaslav anticipates another bid from Ellison in the coming days, potentially escalating to a public or hostile offer. Ellison, son of Oracle co-founder Larry Ellison, is reportedly being advised to remain cautious with his financial commitments, believing that the backing of former President Donald Trump could complicate rival bids from companies like Netflix and Amazon.
As the auction unfolds, Zaslav’s strategy is to leverage the heightened interest in Warner Bros. Discovery, which has recently seen significant financial success with its streaming services and blockbuster film releases. HBO Max now boasts over 73 million global subscribers, positioning the company for a lucrative sale.
The implications of this auction extend beyond corporate strategy; they could reshape the media landscape. Zaslav’s tenure has focused on reducing debt and revitalizing the Warner Bros. brand, which is now seeing returns from a series of successful films that collectively surpassed $4 billion in box office revenues this year.
Amidst growing tensions, analysts speculate that Zaslav believes the value of Warner Bros. Discovery’s studio and streaming units could be as high as $30 per share. A source close to Zaslav noted, “He feels like he did what he was supposed to do: fix the company and then sell at a premium.”
As developments continue, the industry watches closely. The potential sale represents a significant moment for Warner Bros. Discovery, which Zaslav plans to split into two divisions—one for its studio and streaming operations, and another for its cable properties.
With the auction now in motion, all eyes are on Ellison and his next move. The outcome could redefine media ownership and influence in the months to come. Stay tuned for updates as this story develops.