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Warner Bros. Discovery has signaled that it may be open to a sale of its business just months after announcing plans to split into two companies.

In an announcement Tuesday, the entertainment giant said it had initiated a review of “strategic alternatives” in light of “unsolicited interest” it had received from “multiple parties” for both the entire company and Warner Bros specifically.

“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,” it said.

Warner Bros. in recent weeks rejected a bid from Paramount Skydance, according to Bloomberg News and other media outlets (Paramount Skydance owns CBS News). 

Warner Bros.’ stock price jumped in early trading, rising nearly 10% to $20.12. The shares have climbed 91% this year, especially in recent weeks as speculation has grown on Wall Street that the company was in play. 

The company’s market value on Tuesday hovered around $49 billion, and Wall Street analysts estimate that the price of any deal to buy Warner Bros. would likely top $60 billion. 

Split or sell?

In June, Warner Bros. announced that it planned to split into two companies by mid-2026, one focusing on streaming and films, and the other housing TV services/channels brands including CNN and TNT Sports. Warner Bros. CEO David Zaslav said Tuesday that the restructuring remains on track. 

“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,” Zaslav said in a statement. 

Still, he added, “it’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market.”

Equity analysts with MoffettNathanson said potential bidders for all or parts of Warner Bros include Paramount Skydance, Comcast and Sony. Tech giants such as Amazon, Apple and Netflix, all of which produce streaming content, are less likely to explore a deal, according to the the investment advisory firm.

“[W]e do expect the demand for Warner Bros. streaming and studio to command a premium multiple,” the analysts said in a note to investors. “Whether multiple bidders emerge for just these assets will likely determine if the price can reach levels high enough to move forward with this alternative plan.”