Warner Bros Discovery has turned down a nearly $60 billion takeover offer from Paramount Skydance, choosing instead to explore other strategic options for the company’s future. According to sources cited by Reuters, the rejected offer, valued at about $24 per share, was primarily cash-based and came as part of Paramount’s bid to expand its global entertainment footprint.
The company, known for its vast portfolio including Warner Bros studios, CNN, and HBO Max, confirmed it is assessing a range of possibilities — from selling the entire company to executing its previously planned split into separate studio and cable units. This move, first announced in June, aims to separate the fast-growing streaming segment from the slower cable network business.
Shares of Warner Bros Discovery rose by 11% on Tuesday following reports of the rejected offer. The company’s market capitalization currently stands at about $45.36 billion, with its stock surging more than 46% since early September when reports of Paramount’s interest first surfaced.
While Paramount Skydance declined to comment, analysts suggest the firm remains the most likely buyer due to its alignment with Warner’s film and streaming strengths. However, other major players — including Comcast, Netflix, Amazon, and Apple — are reportedly monitoring the situation closely. Comcast is already in the process of spinning off its NBCUniversal cable networks into a new company called Versant.
Industry experts say any deal involving Warner Bros Discovery would dramatically reshape the global media landscape. The company owns iconic franchises like Harry Potter, DC Comics, Game of Thrones, and The Lord of the Rings, making it an attractive asset despite its $35 billion debt.
Bank of America analyst Jessica Reif Ehrlich estimated the company’s fair value at around $30 per share, citing its vast intellectual property library and high production value. Analysts also believe that David Ellison, CEO of Paramount Skydance, has both the ambition and financial backing — courtesy of his father, Oracle co-founder Larry Ellison — to pursue such a massive acquisition.
The Warner Bros Discovery board will now evaluate multiple routes, including a potential merger of its Warner Bros division and a spinoff of Discovery Global. Any of these moves could mark a defining moment in the ongoing transformation of the entertainment industry, as streaming continues to eclipse traditional television.
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