Entertainment giant Warner Bros. Discovery, Inc. (WBD) edged higher in pre-market trading after a Financial Times report said a New York–based hedge fund investor was approached about buying all or part of the company’s cable TV business, including CNN.
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The interest centers on Soo Kim, founder of hedge fund Standard General, who has reportedly held talks about a potential deal involving WBD’s cable networks. Importantly, the outreach came from a major shareholder rather than the company itself, signaling that some investors are actively looking to unlock value from the business.
Kim is known for investing in challenging situations. His past deals include retail brands and local TV stations, and more recently he moved into gaming through the takeover of Bally’s.
Why Investors Are Looking at WBD Again
This interest comes at a pivotal time for Warner Bros. Discovery. The company plans to separate its cable TV business while moving ahead with the sale of its studio and streaming assets to Netflix (NFLX) in a deal valued at about $83 billion.
At the same time, WBD is dealing with a hostile offer from Paramount Skydance (PSKY), which proposed buying the company for $30 per share in cash. WBD’s board rejected the bid yesterday, saying the funding carried too much risk.
Interest from a private investor like Kim could therefore matter. Fresh capital may help support WBD’s cable business at a time when traditional TV is under pressure. While cable networks face rising costs and falling viewership, new funding could help steady operations and support changes to the business.
WBD also said this week that more than one potential buyer has shown interest in its traditional TV assets, though it did not name them. For investors, the key question is whether this outside interest can unlock value — or if the cable business remains weighed down by falling ad demand and cord-cutting.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on eight Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 165% rally in its share price over the past year, the average WBD price target of $22.32 per share implies 20.9% downside risk.
