The news: Warner Bros. Discovery (WBD) is publicly considering a sale after receiving acquisition interest from several buyers, the company announced Tuesday. The HBO, CNN, and Warner Bros. movie studio owner stated it would expand its strategic review based on “unsolicited interest from multiple parties” as it seeks “the best path forward to unlock the full value of our assets,” according to president and CEO David Zaslav.

The company also stated that it is still moving forward with plans to separate into two separate companies, one focused on streaming and studios and the other on global cable networks, but that it is now exploring all options.

WBD shares jumped 9% in pre-market trading Tuesday on the back of the announcement.

Potential suitors: Among interested parties are Netflix and Comcast, according to CNBC—but Paramount Skydance could be a frontrunner based on its interest shown in WBD in the past month.

• The Wall Street Journal reported in September that recently merged Paramount Skydance was preparing a bid to acquire WBD in an offer that would include all of WBD’s video assets, while Discovery Global would retain a 20% stake in Warner Bros.
• But WBD reportedly rejected the offer from Paramount Skydance just over a week ago, stating that the offer of $20 a share was “too low.”

Why reconsider? Despite initially seeming opposed to a sale and instead focusing on restructuring through its planned split, WBD is now considering its options for several reasons.

• Both WBD and Paramount’s linear assets are decaying as pay TV subscribers increasingly embrace streaming over traditional TV. A merger would provide much-needed scale to keep both companies afloat in the streaming-first era, while combining powerful IP from both companies to better rival streaming leaders.
• Beyond Paramount, companies like Netflix could show interest because of WBD's assets, including popular franchises like “Harry Potter” and series like HBO’s “Game of Thrones,” as it looks to build access to strong IP. While Netflix has seen success with IP like “Stranger Things,” its portfolio overall lacks WBD’s scale—meaning an acquisition could contribute to better brand loyalty by reducing dependency on third-party licensing.
• WBD is struggling with a massive debt load. A deal would allow WBD to offload a significant portion of its debt by leaving Discovery Global carrying most of the load while retaining a stake in Warner Bros.

What it means for marketers: WBD’s change in attitude could have significant implications for marketers by increasing audience reach and unlocking diversified ad inventory across popular IPs.

• A combined WBD and Paramount Skydance would control a wide range of linear and digital video assets, including ad-supported platforms like HBO Max and Paramount+. This would provide marketers with a more diverse mix of scripted content, news, and sports rights, while in turn addressing the fragmentation issue advertisers experience across streaming services—contributing to more effective ad campaigns.
• Marketers will simultaneously benefit from the ability to run larger, more integrated campaigns across a broader set of premium video properties, while also gaining access to simplified media buying to plan and execute cross-platform campaigns.