Warner Brothers Discovery, the US media conglomerate that owns HBO, CNN and other networks, has said it is considering a sale, after “multiple parties” had made unsolicited offers to buy the company.
Chief executive David Zaslav said the board would review its options in light of the bids, as it looks to identify the “best path … to unlock the full value of our assets”.
Shares jumped more than 8% after the announcement, which sets the stage for a potential bidding war over the firm.
Players such as David Ellison’s Paramount Skydance are among the firms reported to be interested in an acquisition.
The media industry has been rapidly consolidating, as it responds to pressures from the rise of streaming and decline in traditional pay TV audiences and advertising.
Warner Brothers Discovery is itself the result of a merger completed just three years ago, which united Warner Media, previously part of AT&T, with Discovery, owner of networks such as the Food Network and HGTV.
But the deal left the company heavily burdened with debt. It has also been losing money.
Earlier this year Mr Zaslav said he was preparing a break-up of the business, which would split its streaming operations from its traditional cable networks.
Analysts say the company’s rich library, stocked with franchises that include Harry Potter, Lord of the Rings and Looney Tunes, makes it attractive for firms looking to bulk up their online streaming catalogues.
But the appeal of the cable networks is less obvious.
Warner Brothers Discovery board chairman Samuel Dipiazza said the company still believed in the merits of its plan to split the assets but would now review other options, including sale of all or parts of the business.
The company said there was no set timeline to complete its review and the unsolicited offers had concerned both the entire company and Warner Brothers itself.
The reported interest of Paramount Skydance, only weeks after it completed its own merger, has drawn particular attention, signalling the ambitions of boss David Ellison, son of Oracle boss Larry Ellison.
A potential sale could face government review of competition and anti-trust implications.
Analysts believe the Paramount bid stood a strong chance of approval, citing the Trump administration’s relatively hands-off approach to mergers.
They also highlighted the Ellison family’s apparent close ties to President Donald Trump, noting that his administration had blessed deals involving their companies, including Skydance’s takeover of Paramount.
“They got on Trump’s good side to get the Paramount deal closed so there’s still some of that good will that they could use,” Brent Penter, associate analyst at Raymond James said, shortly after Ellison’s interest was reported. Of other potential buyers, he added: “Not everyone has that good will.”