Investors did not see this coming, but Warner Bros. Discovery just started a new chapter.

For a long time, the media behemoth was seen as a recovery story based on streaming and studio expansion. Now, it is at the heart of what may be the greatest entertainment shakeup of the year.

Many entertainment conglomerates, including Comcast, Paramount Global, and possibly even Netflix, are interested in acquiring WBD. All of this action means WBD’s anticipated split into something much more exciting: a full-blown takeover watch.

At the same time, Bank of America’s analysts are sticking to their positive perspective. They reiterated their buy rating and $24 price target in a letter to clients, saying that the strategy review was a major factor.

The analysts commented on the company’s strategy to split Studio & Streaming from Global Networks:

The proposed breakup, due to happen in April 2026, was expected to free up value by allowing the faster-growing parts of the business to shine on their own. It could now be laying the ground for a bidding battle.

Warner Bros. Discovery’s content empire spans streaming, studios, and global networks.

Kevin Dietsch/Getty Images

Warner Bros. Discovery breakup talk turns to buyout buzz

WBD’s original intention was to split Warner Bros. (Studios and Streaming) from Discovery Global (Linear Networks) by April 2026. This was supposed to let each business shine on its own and unleash value.

BofA’s call stressed that when viewed as a whole, the studio and streaming businesses are worth a lot more than the company’s dwindling linear networks.

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But what started as a simple split now appears to be an auction. WBD CEO David Zaslav reportedly met with Comcast’s Brian Roberts to discuss strategic possibilities, and they had full access to internal data rooms.

Paramount has already submitted early proposals, while The New York Post reports that Roberts recently visited Saudi Arabia to seek support from the kingdom’s sovereign wealth fund.

This type of interest means one thing: big names want to get in on WBD’s assets.

Studios rising, cable declining: Wall Street sees the split

The results for WBD’s third quarter reflected the story of two companies. Theatrical revenue increased by 74% from the previous year, which helped Studios increase revenue by 23% (excluding FX).

At the same time, linear advertising declined by 20%, since the number of viewers in the U.S. plummeted by 26%. This isn’t a new tale for cable networks, but it makes the argument for separation stronger than ever.

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BofA slightly boosted its outlook for adjusted EBITDA in 2026 to $8.995 billion, explaining that gaming, licensing libraries, and consumer goods will contribute to the company’s growth. The company believes that success at the segment level, rather than combined results, may now determine the stock’s direction.

That theory could already be proving true. Shares have garnered significant attention from institutional investors again, notably Penserra Capital, which has recently increased its WBD share holdings.

Deal or no deal, investors may win either way

Analysts think that even if Comcast or Paramount doesn’t buy sections of WBD, there is still value in the company.

Bank of America noted several factors that may impact the stock’s rating in 2026, including easier comparisons, a rise in ad revenues, growth in DTC, and the planned split, which would unlock value.

The first plan to split up was a brave move. However, if WBD’s Studio and Streaming departments gain fresh momentum and large media companies start to take notice, this might become something bigger.

The issue today is not whether WBD will split. It’s who gets there first.

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