Investors were surprised by Warner Bros. Discovery’s new chapter, now at the center of a major entertainment shakeup. Comcast, Paramount Global, and Netflix are eyeing acquisitions, leading to a potential bidding war. Bank of America remains positive, citing the split strategy as a key factor for future growth.

Warner Bros. Discovery planned to split into Warner Bros. (Studios and Streaming) and Discovery Global (Linear Networks) by April 2026 for increased value. BofA emphasized the value of studio and streaming businesses over linear networks, attracting interest from major players.

WBD’s third-quarter results showed a surge in theatrical revenue, boosting Studios’ revenue by 23%. Linear advertising declined as U.S. viewers decreased, strengthening the case for separation. BofA raised its 2026 EBITDA outlook, highlighting gaming and licensing as growth drivers.

Interest in WBD has increased, with potential suitors like Comcast and Paramount in the mix. BofA sees value in the company regardless of acquisition outcomes. The planned split may unlock further value and impact the stock’s rating in 2026.

Warner Bros. Discovery’s initial split plan has evolved into a potential auction. CEO Zaslav met with Comcast’s Roberts and Paramount has submitted proposals. Institutional investors are taking notice, anticipating growth in gaming, licensing, and consumer goods. The race is on for who will benefit first.

Read more at Yahoo Finance: Warner Bros. Discovery just got a boost, and buyers are circling