There were signs that AEW’s media rights partner Warner Bros Discovery might be for sale a couple years ago, before Tony Khan’s company inked an expanded deal that put AEW’s shows (and PPV) on WBD’s HBO Max streaming service in addition to on their TBS and TNT cable networks.
In 2023, reports said that WBD CEO David Zaslav met with the then-head of Paramount about a merger. Paramount has since been taken over by Skydance and nepo-billionaire David Ellison, and was said to be working on acquiring WBD to add
it to young Ellison’s growing media empire. Those talks appeared to stall out as Zaslav and WBD focused on their own plan to split into two separate, publicly-traded companies, one focused on movies and streaming, the other on its traditional television operations.
WBD put out a press release this morning (Oct. 21) that acknowledges it’s received “unsolicited interest” from “multiple parties for both the entire company and Warner Bros” alone. Given that, it’s decided to put itself up for sale.. or in Wall Streetese, “review” its “strategic alternatives to maximize shareholder value.” WBD is continuing work toward their “Studios & Streaming”/“Global Networks” split in the interim.
Here’s that presser:
Warner Bros. Discovery Initiates Review of Potential Alternatives to Maximize Shareholder Value
Company Continues to Execute on Previously Announced Separation into Two Distinct, Leading Media Companies
Process Follows Unsolicited Interest from Multiple Parties for the Entire Company and Warner Bros.While Warner Bros. Discovery (the “Company”) (NASDAQ: WBD) continues to advance its previously announced separation of Warner Bros. and Discovery Global, its Board of Directors today announced it has initiated a review of strategic alternatives to maximize shareholder value, in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.
Through this process, the Warner Bros. Discovery Board will evaluate a broad range of strategic options, which will include continuing to advance the Company’s planned separation to completion by mid-2026, a transaction for the entire company, or separate transactions for its Warner Bros. and/or Discovery Global businesses. As part of the review, the Company will also consider an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders.
“We continue to make important strides to position our business to succeed in today’s evolving media landscape by advancing our strategic initiatives, returning our studios to industry leadership, and scaling HBO Max globally. We took the bold step of preparing to separate the Company into two distinct, leading media companies, Warner Bros. and Discovery Global, because we strongly believed this was the best path forward,” said David Zaslav, President and CEO of Warner Bros. Discovery.
Zaslav added, “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market. After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. “We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
There is no deadline or definitive timetable set for completion of the strategic alternatives review process. Other than the separation transaction that is already underway, there can be no assurance that this process will result in the Company pursuing a transaction or other outcome. Warner Bros. Discovery does not intend to make any further announcements regarding the review of strategic alternatives unless and until the Board approves a specific transaction or otherwise determines further disclosure is appropriate or necessary.
Allen & Company, J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
Shares of WBD jumped 10% at the start of trading in the wake of the announcement.
What does this mean for AEW? The contract they signed last year would be acquired with WBD, so there’s no immediate concern. But will the new owners be pro-pro wrestling? Enough to keep two weekly shows and monthly PPV events coming? Most importantly, enough to pick up the reported optional fourth year on AEW’s deal, and remain in the market for a renewal?
It’s way too early to tell. We don’t even know who else might be bidding for Warners other than Ellison & Paramount Skydance. But that won’t stop the predictions and prognostications from coming…
Brace yourself or weigh in below.
