Things are heating up for Warner Bros. Discovery's impending sale. The situation has been nothing short of a rollercoaster ride, with Paramount having submitted multiple (rejected) bids for the company, and various other players considering entering the fray, including Netflix, Apple and Comcast. Things are now seemingly taking a more determined turn as, according to CNBC, WBD is currently considering three possible outcomes for itself: Sell some company assets, split the company in two, or sell it as a whole.
Though no decision has been reached, sources told CNBC that, should it decide not to split, Warner Bros. Discovery will announce its sale in either mid or late December. Splitting the company comes with its own set of challenges that shareholders might no be willing to go through, though. Earlier in 2025, Warner Bros. Discovery was announced to be splitting into two entities—Discovery Global and Warner Bros.
Though selling the two halves of the company as separate entities is said to be "the most tax-efficient way to sell," selling Warner Bros. as two separate entities could present a challenge. This is because brands under Discovery Global—CNN, TNT and TBS— are said to have faced considerable declines in revenue, making that portion of the company on its own a not-so-attractive prospect for potential buyers.
Given its many high-value entertainment brands, Warner Bros. should have a bigger appeal. However, CNBC states that the price for it needs to be high enough for shareholders to consider splitting the company.
Then there's the matter of Paramount. CEO David Ellison has been quite keen on acquiring the company. So much so, in fact, that CNBC states Paramount CEO David Ellison sent a letter to the WBD board of directors, pleading a case for the company's latest offer of $23.50 per share being in shareholders' best interests. The offer would involve paying 80% in cash and 20% in equity.
The more surprising update is perhaps Paramount's latest plans to acquire WBD. According to CNBC, Paramount will give time to see if WBD's board of directors is willing to engage in "friendly sale discussions." However, per the report, should the company remain unresponsive or decide to go "in another direction" (presumably going for another buyer), the David Ellis-run company is considering making a hostile bid for the company. A hostile bid occurs when one company wants to buy another one, but the latter's management (such as a board of directors) is reluctant to sell. As such, the purchasing company bypasses management and sends an offer straight to the target company's shareholders.
This, per Investopedia, typically materializes as a tender offer, which means buying some or all stock directly from shareholders, usually at a premium price. Paramount's third and latest offer to WBD seemingly already included a premium. As noted by CNBC:
"If Paramount appeals directly to shareholders, it will argue that its offer is superior relative to Warner Bros. Discovery's closing price on Sept. 10, the day before The Wall Street Journal reported Paramount was preparing a bid for the company. Warner Bros. Discovery closed at $12.54 per share on Sept. 10. A $23.50 per-share offer is 87% higher than the so-called unaffected share price."
As drastic as the plan sounds, there is also a not-insignificant chance of the bid getting rejected. According to CNBC, only 20% of long-term Warner Bros. Discovery shareholders (those who've owned stock for a year or more) are needed to combat a hostile bid.
After so much uncertainty, there is now, at least, a reported time frame for WBD to provide a concrete update on its future.