Warner Bros. Discovery’s potential restructuring is gaining momentum, as CEO David Zaslav confirmed the company’s “exploration of a possible sale of some or all of its holdings is briskly moving ahead.” The remarks come amid ongoing reports that several major media players are eyeing the company’s assets.
According to multiple sources to the Wall Street Journal, Paramount has already made three formal bids for Warner Bros. Discovery, all of which have been turned down. Other potential suitors reportedly include Comcast, Amazon, and Netflix, signaling that interest in WBD’s wide-ranging portfolio remains high despite the company’s recent financial turbulence.
While speculation around a sale continues to swirl, company leadership appears to be leaning toward a different direction. WBD Chair Samuel DiPiazza Jr. said last month that the company believes a split — dividing its entertainment and news/sports holdings — is the best path forward for both the company and its shareholders.
Sources close to Zaslav echoed that sentiment to WSJ, noting he has expressed a preference for a split rather than an outright sale.
Financially, Warner Bros. Discovery remains in a challenging position. The company reported total revenue of $9 billion in its most recent quarter, down 6% from the same period last year. WBD also posted a net loss of $148 million, a reflection of ongoing struggles in linear television and what Zaslav described as “a flat performance in streaming.”
The company’s streaming division generated $2.6 billion in revenue, essentially unchanged from last year. However, ad revenue within streaming grew by 15%, suggesting progress in monetizing the platform’s growing global footprint.
Executives told investors they expect HBO Max distribution revenue to “reaccelerate” early next year, though near-term challenges remain.
Those headwinds include the absence of NBA games on Max following the expiration of the company’s current broadcast rights, as well as expenses tied to international rollouts. Meanwhile, linear networks — still WBD’s most significant cash generator — produced $3.9 billion in revenue, but that figure was down 22% from a year ago. Distribution revenue declined 8%, driven by continued cord-cutting, while advertising revenue fell 20% as ratings and viewership softened.
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