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Bonds of Warner Bros. and Discovery rallied by ~1.5 points across the curve. The company initiated a comprehensive review of strategic options to maximize shareholder value, following “unsolicited interest” from multiple parties looking to acquire the entire company or its popular Warner Bros. division. This comes despite the company’s ongoing plan to split into two distinct businesses — Warner Bros. (studios/streaming) and Discovery Global (cable networks)—by mid-2026. The company’s board is evaluating the spectrum of options, i.e., proceeding with the planned two-way separation, selling the entire company, pursuing separate sales of its Warner Bros. and Discovery Global units, or considering an alternative structure. CEO David Zaslav stated that the move aims to “unlock the full value of our assets,” noting that the portfolio’s significant worth is receiving increased market recognition. Warner Bros Discovery’s board rejected a nearly $60bn offer from Paramount Skydance, as per a Reuters source. As per CNBC’s report, Comcast and Netflix were also among those interested in a potential transaction.
Warner Bros Discovery’s share price rallied by nearly 11%. Warnermedia’s 4.279% 2032s were up 1.4 points to trade at 87.8, yielding 6.6%. Discovery Communications’ 3.625% 2030s were up 2 points to trade at 89.2, yielding 6.4%.
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