Warner Bros. Discovery has announced that it is exploring a range of strategic options to "maximize shareholder value." Among the possibilities under consideration are a split of the company into two separate entities by mid-2026, the sale of individual business units-such as Warner Bros. or Discovery-or potentially even a full sale of the entire company, Azernews reports.

According to the company, several unsolicited proposals have already been received from unnamed third parties, which were not coordinated with management. In response, Warner Bros. Discovery made the decision to publicly disclose that it is evaluating both full and partial divestiture options.

Following the announcement, shares of Warner Bros. Discovery surged by 10%, reflecting investor optimism about the potential value unlocked through restructuring or a sale.

Warner Bros. Discovery was created in 2022 following the spin-off of WarnerMedia from AT&T and its subsequent merger with Discovery Inc. The move was seen as an effort to combine one of Hollywood's largest film studios with Discovery's vast library of non-scripted content to better compete in the rapidly evolving media landscape.

Notably, Paramount Global recently expressed interest in acquiring Warner Bros. Discovery. However, according to unconfirmed reports, the offer was rejected by Warner Bros. Discovery, which deemed Paramount's proposed valuation too low.

If a split were to occur, it could pave the way for Warner Bros. and Discovery to pursue separate strategies-with Warner Bros. focusing on blockbuster films and premium scripted content, and Discovery leveraging its strength in unscripted programming and global lifestyle brands. This could attract different types of investors and better align with each unit's market potential.

The media industry continues to undergo rapid consolidation and transformation, as traditional players grapple with streaming competition, cord-cutting, and shifting viewer habits. Warner Bros. Discovery's next move could significantly reshape the entertainment landscape yet again.

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