Investment bankers circle New Line Cinema and WBD cable networks
August 26, 2026 17.53 Europe/London By Robert Briel

Investment bankers are quietly preparing for possible asset sales at Paramount and Warner Bros. Discovery as the companies remain locked in a high‑stakes legal battle with California Attorney General Rob Bonta over their proposed $110 billion merger, according to a new Bloomberg report.

Bankers have approached potential buyers about New Line Cinema, the studio behind franchises such as It and The Lord of the Rings: The Rings of Power. They have also seen interest in WBD’s cable networks, with some parties reportedly weighing bids for Comedy Central. Paramount and Warner Bros. Discovery declined to comment on the discussions.

The reported buyer interest comes as Bonta signals he is open to significant structural remedies. In an interview with TheWrap, he said he would consider a carve‑out of a “significant” portion of the combined company’s 50 basic cable channels as part of a settlement — though he declined to specify which networks he believes should be spun off.

A potential sale of CNN has already become a flashpoint in the litigation brought by 12 states and the Writers Guild of America. Paramount has insisted it will not sell the news network, and Bonta has said that divesting CNN alone would not satisfy regulators’ concerns.

Bonta has also indicated he would be interested in a remedy that keeps Paramount’s and Warner Bros. Discovery’s studios operating independently, according to the Wall Street Journal. That report prompted Bonta to cancel a mediation session scheduled for Monday, citing concerns over leaks. He said talks could resume as soon as this week — but only after Paramount “figures out where the leaks are and shuts them down.”

Paramount said in a statement that it “remains hopeful and is committed to good‑faith discussions” with Bonta’s office, adding that any negotiations will be limited to authorized leadership and the AG’s team. “Any reports inferring knowledge of the details otherwise are speculation, not fact,” the company said.

The merger, one of the largest ever attempted in Hollywood, has sharply divided the industry. While major theater chains and several unions support a settlement, the Writers Guild of America is suing to block the deal, arguing it would reduce competition and harm workers. The legal battle continues to intensify as regulators weigh whether sweeping divestitures — potentially including entire cable portfolios or major studios — will be required to move the merger forward.