Warner Bros. Discovery just got a boost, and buyers are circling

Core Insights - Warner Bros. Discovery (WBD) is undergoing significant changes, transitioning from a recovery narrative focused on streaming and studio expansion to a potential takeover scenario [1][2] - Major entertainment companies, including Comcast and Paramount Global, are showing interest in acquiring WBD, indicating a shift from a simple business split to a competitive bidding environment [2][6] Company Strategy - WBD plans to split its Studio & Streaming segment from its Global Networks by April 2026, aiming to unlock value by allowing the faster-growing segments to operate independently [3][4] - Bank of America analysts maintain a positive outlook, reiterating a buy rating and a $24 price target, emphasizing the importance of the strategic review in their assessment [2][5] Financial Performance - WBD's third-quarter results highlighted a stark contrast between its studio and streaming operations and its linear networks, with theatrical revenue increasing by 74% year-over-year, contributing to a 23% revenue rise in the studio segment [7] - Conversely, linear advertising revenue fell by 20%, driven by a 26% drop in U.S. viewership, reinforcing the rationale for the proposed separation [8]