Dec 8 (Reuters) – Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros Discovery
Netflix had emerged victorious on Friday from a weeks-long bidding war with Paramount and Comcast, securing a $72 billion equity deal for Warner Bros Discovery’s TV, film studios and streaming assets.
Here’s what analysts and market experts are saying about the latest development:
ADAM SARHAN, CHIEF EXECUTIVE, 50 PARK INVESTMENTS, NEW YORK
“It’s bullish for the media. Whoever ends up acquiring those assets will be the winner. It’s one company that’s being acquired. This doesn’t change disrupt the media business. All it is, is consolidating the media business. You have companies that have a lot of cash, like Paramount and Netflix.
“They have deep pockets. There could be a bidding war here, but the reality is whoever walks out with those assets, it’s going to benefit the shareholders of that company, assuming they don’t overpay.”
PAOLO PESCATORE, ANALYST, PP FORESIGHT, LONDON
“This is turning messy very quickly and seems like sour grapes. There were concerns that Paramount Skydance would challenge the auction process. For Paramount Skydance, it would have been far easier and more efficient to bid appropriately through the auction.”
“While a decision has been made, Warner Bros Discovery will need to consider all options. In essence, there is so much more at stake than simply offering a bigger deal. This latest episode has the makings of a TV show in its own right.”
“I, like many, was surprised by the outcome as Paramount Skydance seemed to be in pole position given its interest in acquiring the entire company. This would have been the far easiest outcome for WBD, without the need to separate Global Networks later, as is currently the case.”
ROSS BENES, SENIOR ANALYST, EMARKETER
“The Warner Bros Discovery acquisition is far from over. Netflix is in the driver’s seat but there will be twists and turns before the finish line. Paramount will appeal to shareholders, regulators and politicians to try to stymie Netflix. The battle could become prolonged.”
CRAIG HUBER, ANALYST, HUBER RESEARCH PARTNERS, CONNECTICUT
“Paramount should be very careful taking on the amount of debt they are proposing to fund buying Warner Bros. Discovery, in our opinion, regardless of the synergies given the long-term secular revenue pressure the legacy businesses face which are not going away. Debt is not your friend with media stocks. Did putting CBS and Viacom together work out?”
(Reporting by Jaspreet Singh, Arnav Mishra, Arpan Varghese in Bengaluru Editing by Anil D’Silva)
