Key Facts on Warner Bros. Discovery Acquisition Battle
Netflix (NASDAQ: NFLX) has presented a $72 billion acquisition offer for Warner Bros. Discovery (NASDAQ: WBD) in December, triggering a high-stakes battle involving Paramount Skydance (NASDAQ: PSKY), which launched a hostile takeover bid at $30 per share. Paramount’s CEO David Ellison claims Netflix’s deal undervalues Warner’s legacy assets, suggesting an inflation of their worth beyond prior estimates of $4 per share.
Recent developments indicate Netflix is contemplating an all-cash offer and plans to spin off several legacy cable and broadcast assets under a new entity named Discovery Global. The Warner Bros. board has unanimously agreed to the initial offer, with analysts and recent market comparisons hinting that the cable assets may be worth much more than Ellison asserts, potentially influencing Warner Bros. shareholders toward accepting Netflix’s bid.
