Warner Bros. Discovery (WBD), a prominent media conglomerate encompassing brands like Warner Bros., HBO, HBO Max, CNN, TBS, and HGTV, is currently engaged in a critical evaluation of multiple acquisition offers. The company is considering selling itself either in its entirety or in specific parts, a process that commenced with the submission of first-round, nonbinding preliminary bids by major industry players on Thursday, November 20.

Sources close to the situation confirm that Paramount Skydance, Comcast, and Netflix were among the entities that submitted offers by the noon ET deadline. While it remains unconfirmed if other expressions of interest were received, all participants in the bidding process were required to sign nondisclosure agreements, a standard practice in such high-stakes corporate maneuvers. Warner Bros. Discovery, along with Paramount Skydance, Netflix, and Comcast, declined to comment on the ongoing process.

The current review follows WBD's announcement last month regarding inbound M&A interest from multiple parties. The company's board aims to meticulously review these initial offers before Thanksgiving, with a strategic goal of determining the definitive path forward by the end of 2025. This acquisition consideration also aligns with Warner Bros. Discovery's broader strategic plan to split into two distinct companies by April 2026, with David Zaslav slated to lead Warner Bros. and current CFO Gunnar Wiedenfels to head Discovery Global, the TV-centric entity.

David Ellison, fresh from finalizing the Paramount Skydance deal in August, has consistently shown strong interest in acquiring WBD in its entirety. His previous offer in October, proposing $23.50 per share (comprising 80% cash and 20% stock) and suggesting he become co-chairman and co-CEO alongside David Zaslav, was rejected by the Warner Bros. Discovery board. However, Paramount Skydance's current bid, fully supported by the affluent Ellison family (including tech mogul Larry Ellison) and RedBird Capital, is reportedly anticipated to be roughly in line with his prior $23.50 per share offer, as indicated by the Wall Street Journal.

Ellison's camp asserts that Paramount represents the most suitable suitor for WBD, arguing that a merger would forge a significantly scaled-up media and entertainment powerhouse spanning streaming, television, and film. Furthermore, Ellison suggests that a Paramount takeover of Warner Bros. Discovery would likely encounter the fewest regulatory hurdles. Notably, the Ellisons maintain a favorable relationship with President Donald Trump, who is reportedly supportive of a Paramount-WBD merger and has openly expressed animosity toward Comcast chief Brian Roberts due to MSNBC's coverage of Trump.

In contrast to Paramount Skydance's interest in the whole conglomerate, Netflix and Comcast are primarily focused on acquiring Warner Bros.'s streaming and studio operations, specifically HBO Max and the studios. These companies are not interested in WBD's cable TV business, Discovery Global. This selective interest aligns perfectly with WBD's plan to separate its Warner Bros. business. Comcast itself is undertaking a similar structural change, splitting NBCUniversal with the spin-off of its cable-focused Versant company by year-end.

Netflix's motivation stems from a desire to gain access to Warner Bros.'s extensive production capabilities and its deep, rich film and television library. However, the prospect of the leading premium streamer acquiring HBO Max has triggered significant antitrust concerns among some political circles. To address potential issues, sources indicate that Netflix has reassured WBD of its commitment to honoring existing theatrical distribution deals, ensuring that Warner Bros. films would continue to be released in cinemas should its bid prove successful. The intricate decisions facing Warner Bros. Discovery will undeniably reshape the competitive landscape of the global entertainment industry.