Warner Bros. Discovery says Discovery Global’s equity value is between $1.33 and $6.86 per share, according to a new regulatory filing on Tuesday.
Paramount, which has sued to obtain additional disclosure around how the cable network spinoff and $83 billion Netflix deal were valued, has argued that Discovery Global’s equity value ranges between nothing and 50 cents.
In its own analysis, WBD said that the “selected public companies analysis on a whole company basis” implied an equity value of $1.33 to $3.24 per share, while a “selected public companies sum-of-the-parts analysis” implied an equity value of $2.41 to $3.77 per share. However, in the event that Discovery Global is acquired following the separation, the filing states that the implied equity value could be $4.63 to $6.86 per share.
Following the spinoff, which is expected to be completed in six to nine months, Discovery Global will house CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ and Bleacher Report.
Per the new filing, Warner Bros. Discovery projects that Discovery Global will generate $17 billion in total revenue and $5.4 billion in adjusted earnings before interest, taxes, depreciation and amortization for fiscal year 2026. By 2030, those figures are expected to fall to $15.6 billion and $3.8 billion, respectively.
CNN is expected to generate $1.8 billion in revenue and $600 million in adjusted EBIDTA for fiscal year 2026, while the remaining U.S. networks are projected to generate $10 billion in revenue and $3.5 billion in EBITDA. The international networks are projected to generate $4.3 billion in revenue and $1.1 billion in EBIDTA.
Meanwhile, Discovery+ is projected to generate $800 million in revenue and $200 million in adjusted EBITDA in 2026 and expects those figures to grow to $1 billion and $400 million by 2030, respectively.
Under its revised all-cash deal with Netflix, the amount of Warner’s debt being placed on Discovery Global was reduced by $260 million due to better-than-expected cash-flow performance of the business last year. Discovery Global is expected to have $17 billion in debt as of June 30, 2026, which will decrease to $16.1 billion by the end of 2026.
Netflix revised its $83 billion deal for Warner’s streaming and studio assets to all-cash in an effort to simplify its structure, provide “greater certainty of value,” and accelerate the path to a vote by WBD shareholders by April.
It continues to be valued at $27.75 per share, plus additional value from shares in Discovery Global. The deal will be financed through a combination of cash on hand, available credit facilities and committed financing. Wells Fargo, BNP and HSBC are serving as the lead arrangers for the debt financing related to the transaction.
Paramount is seeking to thwart the Netflix deal with a $30 per share, all-cash offer for all of Warner Bros. Discovery, though WBD’s board has recommended against it, warning it provides “insufficient value” and “significant costs, risks and uncertainties.”
The 108.4 billion bid is backed by Oracle co-founder Larry Ellison’s irrevocable personal guarantee towards $40.4 billion of the equity financing, and $55 billion in debt financing from Bank of America, Citigroup and Apollo Global Management. Its other equity partners include RedBird Capital Partners and three Middle Eastern sovereign wealth funds.
Paramount’s tender offer is set to expire on Wednesday at 5 p.m. ET, though that deadline is expected to be extended after a Delaware judge dismissed its motion to expedite proceedings in its lawsuit against Warner Bros. Discovery. As of Dec. 19, less than 400,000 WBD shares had been validly tendered to Paramount Skydance.
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