Comcast, Netflix and Paramount are expected to make bids for Warner Bros. Discovery (WBD) this week, according to a report from Axios.
As the November 20th deadline approaches., Paramount is currently still the only bidder pursuing a full buyout of the company, which it believes gives it a competitive advantage, said the report.
According to a source said to be close to the board, WBD hopes to come to an agreement this year and wants Paramount to increase its offer, currently $23.50 per share, to around $30 as the current offer devalues rather than separates the assets. As it stands, the offer is an 80/20 cash/stock split. On September 10th, the day before the Wall Street Journal reported details of the Paramount offer, WBD stock closed at $12.54 but has since almost doubled to $24 per share.
The Paramount bid is an 87 per cent premium over the pre-speculation price and the company has pledged to keep WBD together, should it complete the acquisition. Sources have claimed Netflix and Comcast are only interested in the studio and streaming assets
WBD is said to be still considering a plan to split into two publicly traded companies, with one focusing on studio and streaming while the other would concentrate on its legacy cable networks.
According to Reuters, Comcast has hired Goldman Sachs and Morgan Stanley as it explores the possibility of a bid. Paramount described a report in Variety that it is considering working with sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi ahead of a $71 billion bid as “categorically inaccurate.”
None of the companies commented on the Axios story.
