Warner Bros. Discovery, Inc. (NASDAQ: WBD) is at the center of one of the biggest media takeover battles in years, with Hollywood studios, tech streamers and Gulf sovereign wealth funds all circling the owner of HBO, CNN and the DC Universe.
As first‑round bids are due on 20 November, Warner Bros. Discovery’s board is pushing for a higher price, investors are piling into the stock and new reports keep reshaping the narrative almost by the hour. [1]
At early afternoon trading today, WBD shares traded around $23.69, up just over 4% on the day, giving the company a market capitalization of roughly $58.6 billion. [2]
Key takeaways today (19 November 2025)
- WBD’s board wants more money: Paramount Skydance’s latest bid of $23.50 per share is considered too low; the board is pushing for around $30, valuing WBD at about $74.3 billion. [3]
- $71 billion bid drama: A widely discussed $71 billion Paramount‑and‑Gulf‑funds offer has been called “categorically inaccurate” by Paramount, but reporting confirms talks with Gulf investors about potential backing. [4]
- Three main bidders: Variety reports Paramount Skydance wants the whole company, while Netflix and Comcast are more focused on WBD’s streaming and studio assets. [5]
- Saudi‑backed money in the mix: TipRanks and other outlets say sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, plus RedBird Capital, are being courted to help fund a Warner deal. [6]
- Fan & political intrigue: Reports say President Trump holds between $500,001 and $1 million in Warner bonds, and at least some coverage suggests he favors a Paramount‑led deal, adding a political twist. [7]
- Core business still under pressure: Q3 results show $9.0 billion in revenue, down 6% year‑on‑year (ex‑FX), a net loss of $148 million and continued weakness in traditional TV advertising, even as streaming and studios grow. [8]
- Strategic breakup already planned: Long before this auction, WBD announced it will split into two public companies – “Streaming & Studios” and “Global Networks” – by mid‑2026, and in October the board launched a broad review of strategic alternatives after receiving unsolicited interest. [9]
- Fresh deal news today: In Europe, Zattoo has been appointed to handle ad sales for HBO Max in Switzerland from January 2026, highlighting WBD’s push to better monetize its streaming inventory. [10]
Paramount’s bid vs WBD’s demands: the $74 billion question
According to Reuters, Paramount Skydance’s most recent proposal values WBD at $23.50 a share, paid 80% in cash and 20% in stock. At that level, the deal is worth about $58.2 billion. [11]
However, WBD’s board is holding out for closer to $30 per share, a price that would push the deal value to roughly $74.34 billion. [12] The gap between $58 billion and $74 billion is enormous – and that difference is driving much of today’s negotiation drama and market speculation.
Reuters also notes that Paramount has publicly rejected one key part of the story: a Variety report claiming it had already assembled a $71 billion bid funded by Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and the Abu Dhabi Investment Authority. Paramount called that specific report “categorically inaccurate”, even as other outlets continue to describe talks with Gulf investors. [13]
At the same time, the Financial Times has reported (as summarized in Reuters) that Paramount CEO David Ellison has held preliminary discussions with Saudi Arabia’s PIF and other Gulf funds about backing a potential Warner bid, which suggests outside capital could still feature in a final structure even if the exact $71 billion claim is disputed. [14]
Key point: WBD’s board is signalling it believes the company is worth significantly more than the initial offers on the table – and that if Paramount wants to take the whole company, it will need to pay up.
Netflix & Comcast: circling the crown jewels, not the whole castle
Variety’s deep‑dive this morning frames the situation as a three‑way race:
- Paramount Skydance – aiming for the entire WBD empire, from Warner Bros. studios to CNN and Discovery.
- Netflix – more interested in streaming and studio assets, not legacy cable networks.
- Comcast (NBCUniversal) – exploring ways to bolster Peacock and its film/TV studio with pieces of WBD, but likely wary of adding more linear TV. [15]
Reuters previously reported that both Netflix and Comcast have explored bids for WBD’s assets, not necessarily the whole company. [16]
A GuruFocus analysis today focuses especially on Netflix’s potential interest, noting that:
- Netflix could theoretically use WBD to deepen its content library and gain access to brands like Harry Potter, DC and HBO, but
- The acquisition would likely be earnings‑neutral at best and would reduce Netflix’s free cash flow per share by 10–15%, according to Morgan Stanley estimates cited in the article.
- Netflix has little history of giant M&A deals, and integration plus regulatory scrutiny would be substantial. [17]
In other words, Netflix may be kicking the tires more than racing to close a deal, while Comcast faces its own challenges: pairing CNN with MSNBC under one corporate roof would raise obvious antitrust questions in any major jurisdiction. [18]
Saudi‑backed bids, Trump’s bonds and a political twist
Today’s coverage also highlights the increasingly geopolitical flavor of the WBD auction:
- TipRanks reports that Paramount is seeking backing not only from Saudi Arabia’s Public Investment Fund, but also sovereign wealth funds in Abu Dhabi and Qatar, along with RedBird Capital. In one described scenario, Paramount would put in around $50 billion, and the three Gulf funds roughly $7 billion each, potentially taking the ticket close to (or above) $70 billion. [19]
- The same piece notes that the sovereign funds are primarily after “reputation and soft power” – access to IP, premieres and film shoots – rather than direct controlling stakes in U.S. media assets, underscoring how Hollywood has become part of global soft‑power strategies. [20]
Then there’s the political angle: TipRanks says President Trump has bought between $500,001 and $1 million of Warner‑related bonds, issued by Discovery Communications LLC, a WBD entity. [21] The article suggests he’s signaling support for a Paramount‑led bid, which would give Paramount control over both CBS News and CNN – an eyebrow‑raising combination in today’s polarized media environment. [22]
Whatever one makes of that, it adds another layer of scrutiny for regulators and investors watching the process.
WBD’s own plan: splitting into two companies by mid‑2026
It’s important to remember that Warner Bros. Discovery was already in the middle of a major re‑architecture before potential buyers showed up.
On 9 June 2025, WBD announced a plan to separate into two independent public companies in a tax‑free transaction: [23]
- Streaming & Studios
- To include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros. Games and studio facilities in Burbank and Leavesden.
- Led by current CEO David Zaslav.
- Global Networks
- To house CNN, TNT Sports, Discovery’s global channels, key free‑to‑air networks across Europe, the Discovery+ streaming service and Bleacher Report.
- To be led by current CFO Gunnar Wiedenfels.
The separation is expected to complete by mid‑2026, with Global Networks retaining up to a 20% stake in Streaming & Studios that it can monetize over time to pay down debt. [24]
Then, on 21 October 2025, the board went further, formally announcing a review of strategic alternatives after receiving unsolicited interest in the entire company and in Warner Bros. specifically. The menu now includes: [25]
- Proceeding with the planned separation into Streaming & Studios and Discovery Global / Global Networks.
- A full sale of the entire company.
- Separate deals for Warner Bros. and/or Discovery Global.
- Alternate structures that might merge Warner Bros. with a partner while spinning off Global Networks to WBD shareholders.
The company has no fixed deadline for this review and has warned investors that no deal is guaranteed, beyond the separation work already underway. [26]
Today’s auction buzz is happening on top of this existing break‑up plan, not instead of it – which partly explains why WBD’s board feels it has leverage to demand a higher takeover price.
How the business actually looks: Q3 2025 by the numbers
Underneath the M&A headlines, Warner Bros. Discovery is still grappling with the same structural issues that have dogged legacy media for years.
In its Q3 2025 earnings release on 6 November, the company reported: [27]
- Revenue: $9.0 billion, down 6% year‑over‑year on a constant‑currency basis. Excluding the one‑off impact of the 2024 Olympics in Europe, revenue was roughly flat.
- Segment trends:
- Distribution revenue fell 4% ex‑FX, as global streaming growth couldn’t fully offset the decline in U.S. pay‑TV subscribers and changes in a renewed HBO Max distribution deal.
- Advertising revenue tumbled 17% ex‑FX, reflecting ongoing declines in linear TV audiences, partially offset by growth in ad‑supported streaming.
- Content revenue dropped 3% ex‑FX, but would have risen 23% excluding the prior‑year Olympics sublicensing; stronger theatrical releases helped.
- Profitability:
- Net loss of $148 million, including $1.3 billion in acquisition‑related amortization and restructuring charges.
- Adjusted EBITDA of $2.5 billion, up 2% ex‑FX, driven by Streaming & Studios growth offsetting Global Networks declines.
- Cash & debt:
- $1.0 billion in operating cash flow and $0.7 billion in free cash flow, dragged by about $500 million of separation‑related items.
- $1.2 billion of debt repaid in the quarter, including $1.0 billion on a bridge loan; WBD ended Q3 with $4.3 billion of cash, $34.5 billion of gross debt and net leverage of 3.3x.
- Streaming scale:
- 128.0 million streaming subscribers, up 2.3 million from Q2, reflecting continued growth for Max and its regional offerings.
These numbers illustrate why WBD is both attractive and vulnerable:
- The IP and streaming scale are undeniable.
- The debt load, structural TV decline and thin margins make a sale or breakup a tempting shortcut to “unlock value”.
WBD stock today: big rally, mixed valuation signals
With the takeover drama in full swing, WBD’s share price has exploded off its 52‑week low of $7.52, recently touching a high of $24.19. [28]
MarketBeat’s snapshot today shows: [29]
- Share price: ~$23.69
- Market cap: ~$58.65 billion
- 52‑week range: $7.52 – $24.19
- P/E ratio: ~79
- P/E/G: ~2.56
- Beta: ~1.74 (meaning the stock is more volatile than the broader market).
TipRanks notes that after a ~139% rally over the last year, Wall Street’s average price target of around $22.08 implies about 6.8% downside from current levels – even before any takeover premium is finalized. Analysts collectively rate the stock a “Moderate Buy”, with a split of Buys and Holds and virtually no active Sells. [30]
In parallel, GuruFocus argues that WBD’s modest revenue growth and thin net margin (about 1.3%) leave limited room for error, especially as the stock trades near the upper end of its historical valuation band. [31]
Institutional investors remain engaged: a MarketBeat piece today highlights that Universal Beteiligungs und Servicegesellschaft mbH increased its stake in WBD by 1.0% in Q2, now holding about 1.57 million shares (roughly 0.06% of the company). Other funds have also added small positions, and in total around 60% of WBD’s stock is held by institutions and hedge funds. [32]
Streaming, sports and ad sales: strategic moves beyond the sale process
Even while potential buyers swarm, WBD is still running the business and pushing Max/HBO Max globally:
- HBO Max / Max’s global push
- Max launched in seven Asian markets on 19 November 2024 – including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan and Hong Kong – bringing the service to more than 72 markets worldwide. [33]
- Today actually marks the first anniversary of that Asia rollout, something fans are celebrating online under the #MaxAsia tag. [34]
- In October 2025, reports out of Pakistan confirmed that HBO Max has now launched in 15 additional markets, including Pakistan, Bangladesh, Cambodia, Macau, Sri Lanka and Ukraine, further expanding WBD’s global streaming footprint. [35]
- Ad sales and monetization
- A new agreement announced today has Swiss streaming platform Zattoo taking over advertising sales for HBO Max in Switzerland from January 2026, coinciding with HBO Max’s launch there. The deal will let advertisers buy premium HBO Max inventory – from House of the Dragon to The White Lotus – through Zattoo’s CTV sales stack. [36]
- Earlier WBD press releases and industry coverage highlight a broader push toward shoppable advertising (“Shop with Max”) and advanced ad products on Max, as the company works to offset weakening linear ad revenue. [37]
- Content partnerships
- Recent reports from Asia and Europe describe expanded content deals for HBO Max, including multi‑year partnerships aimed at strengthening WBD’s slate of Asian titles while giving regional partners access to global franchises. [38]
Taken together, these moves show WBD trying to prove the standalone value of its streaming and studio operations – something that matters whether the company ends up selling, splitting in two or staying independent.
What happens next?
Here’s what to watch over the coming days and weeks:
- First‑round bids (due 20 November)
- Paramount, Netflix and Comcast are expected to submit non‑binding offers by tomorrow. Reuters says that deadline applies to anyone interested in the company or its major assets. [39]
- Does Paramount raise its price?
- The biggest near‑term question is whether Paramount comes closer to WBD’s $30‑per‑share ask, or tries to hold the line near $23.50 and rely on its “New Paramount” integration story and sovereign wealth backing. [40]
- Asset‑only bids from Netflix/Comcast
- Expect more leaks about what slice of WBD each suitor really wants – full takeover vs cherry‑picked assets like Warner Bros. studios, HBO and Max. Asset‑only bids could be easier to clear regulators but more complex to execute given WBD’s debt and separation plan. [41]
- Interaction with the planned breakup
- If bids fall short, WBD can always revert to its mid‑2026 separation, creating a streaming‑first company and a networks‑heavy cash‑flow machine. That “plan B” may be why the board feels comfortable playing hardball on price. [42]
- Regulatory mood
- Any mega‑deal in U.S. media will face intense antitrust and political scrutiny, especially combinations that put multiple major news networks under one owner or deepen ties between Hollywood and state‑backed overseas capital.
For now, investors are clearly betting that something big will happen: WBD is trading near its 52‑week high, and options and social feeds are full of speculation about who ends up controlling Harry Potter, DC, HBO and CNN.
But as WBD itself warned in its October statement, there’s no guarantee the strategic review leads to a sale at all. [43]
References
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