Warner Bros Discovery Rejects Paramount Takeover Offers Amid Strategic Split Plans

Warner Bros. Discovery (WBD) has rejected multiple acquisition offers from Paramount Skydance, with the latest offer being just under $24 per share, primarily in cash. WBD's CEO David Zaslav is focused on executing a strategic plan to split the company into two separate entities by 2026: one combining streaming and studio operations, and the other managing global networks. Despite Paramount's pursuit to create a major media conglomerate combining significant sports broadcasting rights, WBD remains committed to its restructuring strategy amid financial challenges, including declining revenue growth and low profitability margins. The company has received unsolicited interest from multiple parties and is conducting a comprehensive review of strategic alternatives to maximize shareholder value. Paramount's highest bid fell short of Warner Bros. Discovery's valuation expectations, with WBD trading near historical highs but facing concerns such as an Altman Z-Score signaling financial distress. The potential merger would unite major sports portfolios and media assets, making it one of the largest media entities, yet WBD prefers to proceed with its independent operational split.