Dec 8 (Reuters) – Paramount Skydance on Monday launched a hostile bid price $108.4 billion for Warner Bros Discovery
Netflix had emerged victorious on Friday from a weeks-long bidding battle with Paramount and Comcast, securing a $72 billion fairness deal for Warner Bros Discovery’s TV, movie studios and streaming property.
This is what analysts and market consultants are saying concerning the newest improvement:
ADAM SARHAN, CHIEF EXECUTIVE, 50 PARK INVESTMENTS, NEW YORK
“It is bullish for the media. Whoever finally ends up buying these property would be the winner. It is one firm that is being acquired. This does not change disrupt the media enterprise. All it’s, is consolidating the media enterprise. You may have corporations which have a whole lot of money, like Paramount and Netflix.
“They’ve deep pockets. There could possibly be a bidding battle right here, however the actuality is whoever walks out with these property, it is going to learn the shareholders of that firm, assuming they do not overpay.”
PAOLO PESCATORE, ANALYST, PP FORESIGHT, LONDON
“That is turning messy in a short time and looks like bitter grapes. There have been issues that Paramount Skydance would problem the public sale course of. For Paramount Skydance, it might have been far simpler and extra environment friendly to bid appropriately via the public sale.”
“Whereas a choice has been made, Warner Bros Discovery might want to contemplate all choices. In essence, there may be a lot extra at stake than merely providing a much bigger deal. This newest episode has the makings of a TV present in its personal proper.”
“I, like many, was shocked by the end result as Paramount Skydance appeared to be in pole place given its curiosity in buying the complete firm. This may have been the far best end result for WBD, with out the necessity to separate World Networks later, as is at present the case.”
ROSS BENES, SENIOR ANALYST, EMARKETER
“The Warner Bros Discovery acquisition is much from over. Netflix is within the driver’s seat however there shall be twists and turns earlier than the end line. Paramount will attraction to shareholders, regulators and politicians to attempt to stymie Netflix. The battle may grow to be extended.”
CRAIG HUBER, ANALYST, HUBER RESEARCH PARTNERS, CONNECTICUT
“Paramount must be very cautious taking over the quantity of debt they’re proposing to fund shopping for Warner Bros. Discovery, in our opinion, regardless of the synergies given the long-term secular income strain the legacy companies face which aren’t going away. Debt just isn’t your good friend with media shares. Did placing CBS and Viacom collectively work out?”
(Reporting by Jaspreet Singh, Arnav Mishra, Arpan Varghese in Bengaluru Modifying by Anil D’Silva)
