Warner Bros Discovery reviews strategic alternatives after takeover interest

Warner Bros. Discovery (NASDAQ: WBD) announced its board initiated a review of strategic alternatives following unsolicited interest from multiple parties for both the entire company and its Warner Bros division.

The company stated it will evaluate options including completing its previously announced separation into two companies by mid-2026, a transaction for the entire company, or separate transactions for Warner Bros and Discovery Global businesses. The board will also consider an alternative separation structure that would enable a merger of Warner Bros and spin-off of Discovery Global to shareholders.

"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," said David Zaslav, president and CEO of Warner Bros. Discovery.

Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board, said the review "underscores the Board's commitment to considering all opportunities to determine the best value for our shareholders."

Warner Bros. Discovery set no deadline for completing the strategic review process. The company stated there can be no assurance the process will result in pursuing a transaction or other outcome, aside from the separation transaction already underway.

Allen & Company, J.P. Morgan and Evercore are serving as financial advisors to the company. Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.

The company said it will not make further announcements regarding the strategic alternatives review unless the board approves a specific transaction or determines disclosure is necessary.

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