Warner Bros. Discovery (WBD) finds itself at the epicenter of a significant merger and acquisition (M&A) battle, with several prominent media entities vying for its assets. The company is actively fielding acquisition overtures from Paramount Skydance, Comcast, and Netflix, intensifying speculation about its future structure and ownership. In a critical development, WBD has requested second-round bids from these suitors, with a firm deadline of Monday, December 1st. These new proposals are expected to be higher than their initial offers, signaling a competitive and escalating process.

The current bidding process follows the submission of first-round offers, which were received last Thursday, November 20th, from the aforementioned parties. Following the imminent submission of these elevated bids, Warner Bros. Discovery may enter a period of exclusive negotiations with one of the interested companies. This process was set in motion last month when WBD publicly announced it had received inbound M&A interest from "multiple parties," subsequently initiating a formal review of all proposals.

Crucially, Warner Bros. Discovery has indicated a strategic openness to various acquisition structures. The company is prepared to consider proposals that involve selling the Warner Bros. business—encompassing HBO Max and its studios—separately from Discovery Global, its TV-centric component. This approach aligns seamlessly with WBD's already-established internal plan to bifurcate into two distinct companies by April 2026. Under this prospective split, Warner Bros. would be led by current CEO David Zaslav, while Discovery Global would be headed by CFO Gunnar Wiedenfels.

The specific interests of the bidders vary significantly. Netflix and Comcast have reportedly been eyeing a deal to acquire the Warner Bros. streaming and studio operations, indicating a preference for the content-creation and distribution arm separate from WBD’s cable TV business. Conversely, Paramount Skydance has expressed interest in acquiring Warner Bros. Discovery in its entirety, suggesting a comprehensive takeover strategy.

Paramount Skydance's pursuit is not new; its chief, David Ellison, previously submitted bids for WBD. However, the Warner Bros. Discovery board had rejected his earlier $23.50 per share offer, which consisted of 80% cash and 20% stock. Paramount Skydance's most recent first-round bid, submitted last week, was fully backed by the Ellison family—including Oracle founder Larry Ellison—along with RedBird Capital Partners. While specific offer terms and prices for the current bidders could not be definitively confirmed, the Wall Street Journal had previously reported that Paramount Skydance's latest offer was expected to be roughly in line with Ellison's prior $23.50 per share proposal.

Amidst these high-stakes negotiations, Netflix has made a notable commitment. As part of its offer to acquire the Warner Bros. segment, Netflix executives have reportedly assured WBD that the streamer would honor the latter’s existing theatrical distribution deals, thereby ensuring Warner Bros. films continue to be shown in cinemas if its bid proves successful. Despite the flurry of acquisition activity and the compelling offers on the table, the board of Warner Bros. Discovery ultimately retains the option to reject all M&A proposals and instead proceed with its original, independently planned corporate split into Warner Bros. and Discovery Global.