Recent Bids Leave Warner Bros. Discovery Likely to Be Acquired; Its Assets Hold Significant Value

Following recent takeover bids by Netflix and Paramount, we see it as unlikely that Warner Bros. Discovery remains independent and goes through with its plans to split into two separate companies—one holding streaming and studio assets, with the other holding linear networks. If the entire business remains independent, however, we think streaming and studios have a promising future, while global networks face perpetual decline.