Warner Bros. Discovery announced Tuesday it has initiated a comprehensive review of strategic alternatives, Wall Street–speak for considering a sale process, as rumors have swirled for months that one of Hollywood’s legacy studios could be acquired. The company disclosed in a press release that it had received “unsolicited interest from multiple parties for the entire company” and for its iconic Warner Bros. segment. Paramount Global, itself recently acquired by David Ellison, the son of Trump ally Larry Ellison, reportedly made a $20-per-share bid earlier this month. Netflix, the dominant streamer turned Hollywood power player, has also been rumored as a potential acquirer, although co-CEO Greg Peters downplayed it earlier this month, and it is not known as an active M&A player.

“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” CEO David Zaslav said in the press release. “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”

Board response to offers

The company’s board of directors confirmed the review is taking place not only to continue with the previously outlined separation, but to consider a range of transactions. These include an outright sale of Warner Bros. Discovery as a whole, selling off separate divisions, or exploring frameworks for mergers and spinoffs that would maximize shareholder value.

The announcement comes amid a rapidly changing media landscape, where the value of content libraries, studios, and global distribution platforms has soared. Warner Bros. Discovery had already been preparing to divide operations to better position itself in streaming, film, and television markets. This process was expected to culminate by mid-2026 but is now joined by serious external interest, which could accelerate or reshape the company’s plans. Any acquisition—whether full or partial—would represent one of the biggest shake-ups in Hollywood history, given Warner Bros.’s vast portfolio, which spans HBO, DC Studios, CNN, Discovery Channel, and more.

Market reaction and implications

Investor response was instantaneous: Warner Bros. Discovery stock surged by over 11% after the news broke, as traders began to price in the possibility of a blockbuster deal. The timing of Warner Bros. Discovery’s announcement comes as tech titans and Hollywood moguls make aggressive moves. Most notably, Larry Ellison—Oracle chairman and CTO and recently the world’s richest man—has positioned his family as media power brokers, with his son, David Ellison, leading Paramount’s transformation.

David Ellison laid out a vision in July 2024 of Paramount becoming a “tech hybrid” that would one day be capable of competing with Netflix. Ellison has hired away former top-line Netflix talent for Paramount in the form of programming chief Cindy Holland, and he’s poached the creators of the Stranger Things smash, the Duffer brothers.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.

Warner Bros. confirms it’s considering a sale after ‘unsolicited interest from multiple parties,’ stock soars over 11%