Struggling media giant Warner Bros. Discovery: Hungarian group emerges as potential rescuer

TV2 Média, a prominent Hungarian broadcaster, has been identified as a potential buyer for Warner Bros. Discovery’s Polish assets, according to industry sources. This development comes as the Hollywood giant faces financial challenges, including declining stock prices and mounting competition from streaming platforms like Netflix and Disney. Warner Bros. Discovery, despite being a major player in the global media industry, is reportedly considering selling off parts of its Polish operations to improve its financial position.

TV2 Média has been identified as a potential buyer for Warner Bros. Discovery’s Polish assets, according to industry sources. Illustration. Photo: depositphotos.com

The Financial Times recently highlighted the company’s efforts to avoid breaking up its business, as executives race against time to reverse its sliding fortunes, Economx writes. The assets in question include the TVN Group, which owns one of Poland’s largest commercial television networks. Selling these assets could significantly improve the financial outlook of Warner Bros. Discovery, which also owns CNN and HBO.

Warner Bros. Discovery in struggles

The media conglomerate has been under pressure since its merger with Discovery in 2022, a move that was expected to generate substantial returns but has fallen short of expectations. A key factor in the company’s struggles has been the growing dominance of streaming services, which has led to an 8% decline in revenue from its television segment.

It remains unclear whether Warner Bros. Discovery is only looking to sell its terrestrial channels in Poland, such as TVN, TVN7, TTV, and Metro, or if it is also considering divesting its pay-TV channels and the Player streaming service.

Industry observers are speculating about potential buyers. Jakub Bierzyński, head of the consulting firm OMD Poland, noted that investment funds are unlikely candidates since they typically seek high-growth opportunities, which TVN does not currently represent. Local TV companies are also expected to show little interest in acquiring a competitor, while Polish media tycoon Zygmunt Solorz, one of the country’s wealthiest individuals, might face regulatory hurdles if he attempted to expand his influence in the TV advertising market.

As a result, the most likely buyer is expected to come from abroad. Potential candidates include Greece’s Antenna Group, which operates in Romania, Moldova, and Cyprus, France’s Canal+, and MFE-Mediaforeurope (formerly Mediaset), founded by the late Italian Prime Minister Silvio Berlusconi. Another contender is the Czech PPF Group.

Hungarian TV2 as a potential buyer

However, Polish media has also identified TV2 Média as a serious potential buyer. The Hungarian broadcaster is owned by József Vida, a banker with close ties to Lőrinc Mészáros, Hungary’s second-richest person and a close associate of Prime Minister Viktor Orbán.

This wouldn’t be TV2’s first attempt to enter the Polish market. Earlier this year, the company made a bid for a terrestrial TV frequency under the name PTV, planning to launch a lifestyle and entertainment channel. Although the company registered the name and logo, it ultimately did not receive the broadcasting license.

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Featured image: depositphotos.com