Warner Bros. Discovery Explores Sale After Hiking HBO Max Prices

Just after announcing a price hike for HBO Max, parent company Warner Bros. Discovery confirmed it is exploring a potential sale and other strategic options after receiving interest from multiple parties.

• For sale sign: The bigger story broke just minutes after the price hike was revealed, when WBD confirmed in a press release that it has initiated a "comprehensive review of strategic alternatives." The move puts everything on the table, from a full company sale to spinning off its Discovery assets.

• Sweetening the deal: The price hike is a clear strategy to buff the company's financials ahead of a potential deal. CEO David Zaslav is reportedly seeking a valuation closer to $60 billion, a figure that comes into focus after WBD recently turned down a reported $50 billion all-cash offer from Paramount Skydance.

• From the top: “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Zaslav said in a statement. “We have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”

WBD is using a classic playbook: boost revenue per user to drive up its valuation right before a potential acquisition, signaling to Wall Street that it's ready to make a deal.

While WBD focuses on its corporate future, competitor Netflix is pushing deeper into the living room with a new slate of party games. Elsewhere, the massive and growing value of live sports rights continues to be a driving force in the entertainment industry, and the ad world that streamers depend on is getting an emotional makeover from AI.