Warner Bros. Discovery announced Tuesday that it has initiated a strategic review following unsolicited interest from multiple parties for both the entire company and its Warner Bros. studio division. The news sent shares soaring more than 10%.
The company stated that its board is evaluating a range of options, including completing its planned split into two independent entities Warner Bros. and Discovery Global or pursuing a sale of all or parts of the business. The separation, first announced earlier this year, remains on track for completion by mid-2026. Separately, Warner Bros. Discovery revealed a price increase across all HBO Max subscription tiers. The ad-supported plan will rise by $1 to $10.99/month, while standard and premium plans will increase by $1.50 and $2, respectively. The new pricing takes effect immediately for new users and will apply to existing subscribers starting November 20.
CEO David Zaslav emphasized the company’s progress in positioning itself for success in a rapidly evolving media landscape. “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,” Zaslav said.
The announcement follows reports that Paramount Skydance, backed by David Ellison, submitted a majority cash bid for Warner Bros. Discovery. The bid reportedly targeted assets including HBO, CNN, and the Warner Bros. studio lot, aiming to create a global streaming and advertising powerhouse with 200 million subscribers and up to $20 billion in annual TV ad revenue. While Warner Bros. Discovery has reportedly rejected multiple offers from Paramount, other potential bidders such as Netflix and Comcast have also emerged. However, Netflix co-CEO Ted Sarandos stated during the company’s earnings call that it has “no interest in owning legacy media networks,” suggesting it may not pursue a deal.
