Warner Bros. Discovery goes up for sale, if you've got a spare $45 billion

Warner Bros. Discovery (WBD), one of the world's largest media conglomerates, has announced it is putting itself up for sale (thanks, NBC). A press release announced "a review of strategic alternatives to maximize shareholder value" following "unsolicited interest" from "multiple parties for both the entire company and Warner Bros."

The news caused an immediate spike in WBD's share price, which for most of the year has sat around the $10 mark, with shares currently trading at just over $21. The company is currently valued in the region of $45 billion, though any sale may put a further premium on that valuation.

It is difficult to get across just how many fingers WBD has in how many pies. It owns HBO, CNN, game studios, movie studios, streaming platforms, various mega franchises, including Harry Potter and DC Comics, and a slew of broadcast rights for major sporting events, like the Olympics and the English Premier League.

WBD says it will continue to work on previously announced plans to separate its cable networks from its studio and streaming business (one of the difficulties the company is facing is a drop in cable TV viewers, with many consumers choosing internet-based competitors). This will ultimately see the likes of HBO and the HBO Max streaming platform, along with Warner Bros. studios and DC Comics, spun-off into a distinct company.

The big question will probably be whether any acquisition is for the entirety of WBD, or whether potential purchasers just want the crown jewels. Paramount was rumoured to be preparing a bid for the whole shebang back in September, though that appears to have gone quiet for now.

This is just the latest manifestation of the media consolidation we've been watching happen for years, and any deal involving a direct competitor is likely to face significant regulatory scrutiny (as was the case with AT&T's acquisition of Time Warner, which eventually saw Time Warner spun off and merging with Discovery to create the company that exists now). I guess all we can do is cross our fingers and hope it doesn't end up in the hands of the Saudis.