Opinion

A Warner Bros. Sale Makes Sense on Paper. But at What Cost?

As seen in: Bloomberg

Paul Hardart

By Paul Hardart

Warner Bros. Discovery’s decision to put itself up for sale feels equal parts strategic and sorrowful.

It’s the kind of move — the product of trying to address significant debt, shifting audience habits and shareholder demands — that makes perfect sense on a whiteboard in a CEO’s office.

The content creation and distribution capabilities of Warner Bros. make it one of the few vertically integrated studios still standing. A merger with any of its rumored suitors — Paramount Skydance Corp., Comcast Corp., Amazon.com Inc, or Netflix Inc. — would deliver efficiency, cost savings and leverage in a market that rewards size.

Read full Bloomberg article.
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Paul Hardart is Clinical Professor of Marketing and Director of the Entertainment, Media and Technology Program at NYU Stern.