Warner Bros. Discovery CEO David Zaslav wants bidding war for his media giant — even as Paramount Skydance plans takeover offer: sources

Core Viewpoint - Warner Bros. Discovery is preparing for a potential bidding war, with Paramount Skydance planning a multibillion-dollar takeover offer, while CEO David Zaslav is actively seeking interest from other media and tech companies [1][2]. Group 1: Company Strategy and Market Position - Zaslav aims to increase Warner Bros. Discovery's stock price to approximately $40 per share, up from a recent close of just above $16, which would elevate the company's market value to around $40 billion [4]. - The company plans to split into two publicly traded entities, one focusing on streaming and studios, and the other on cable networks, with the spinoff expected in April [6]. - Prior to the buyout interest, Warner Bros. Discovery shares had been underperforming as Zaslav concentrated on cost-cutting measures and reducing $35 billion in debt [8]. Group 2: Competitive Landscape - David Ellison's Paramount Skydance is reportedly preparing an all-cash bid for Warner Bros. Discovery, which has led to a nearly 30% surge in the company's stock price following the news [6][10]. - Other tech giants like Amazon, Apple, and Netflix are also being considered as potential bidders, as they are actively expanding their content offerings [9]. - The regulatory environment is perceived to be more favorable for mergers under the current administration, which could facilitate potential deals in the media sector [11][15]. Group 3: Industry Dynamics - The media landscape is shifting, with cash-rich tech companies increasingly seeking content to enhance their streaming services, creating a competitive environment for acquisitions [9]. - Jay Penske has shown interest in acquiring CNN, indicating ongoing consolidation trends within the media industry [7].