Dec 8 (Reuters) – Paramount Skydance launched a $108.4 billion hostile takeover bid for Warner Bros. Discovery Channel on Monday
Netflix won a weeks-long bidding war with Paramount and Comcast on Friday, securing a $72 billion stake in Warner Bros Discovery’s TV, movie studio and streaming assets.
Here’s what analysts and market experts are saying about the latest developments:
ADAM SARHAN, CEO, 50 Park INVESTMENTS, New York
“This is good for media. Whoever ends up acquiring these assets is going to be the winner. This is just one company being acquired. This is not going to change the media business. This is just consolidating the media business. You have companies with a lot of cash, like Paramount and Netflix.
“They have deep pockets. There could be a bidding war here, but the reality is whoever exits with these assets, assuming they don’t pay an exorbitant price, it will benefit the shareholders of that company.”
PAOLO Pescatore, Analyst, PP FORESIGHT, London
“Things quickly became chaotic and it looked like sour grapes. There was concern that Paramount Skydance would challenge the auction process. It would be easier and more efficient for Paramount Skydance to place appropriate bids through the auction.”
“While a decision has been made, Warner Bros. Discovery will need to consider all options. Essentially, there’s more at stake than just offering a bigger deal. This latest episode has the makings of a TV show in its own right.”
“I, like many, are surprised by this outcome as Paramount Skydance appears to be in the lead given its interest in acquiring the entire company. This would be the easiest outcome for WBD without having to separate Global Networks later as is currently the case.”
ROSS BENES, SENIOR ANALYST, MARKETING
“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 be calling on shareholders, regulators and politicians to try to stop Netflix. This battle could get long.”
CRAIG HUBER, Analyst, HUBER Research Partners, Connecticut
“We believe Paramount should be very cautious about taking on the amount of debt they propose to fund the acquisition of Warner Bros. Discovery Channel, regardless of the long-term long-term revenue pressures facing the legacy business that won’t go away regardless of synergies. Debt is no friend of media stocks. Is the CBS-Viacom merger successful?”
(Reporting by Jaspreet Singh, Arnav Mishra, Arpan Varghese in Bengaluru; Editing by Anil D’Silva)
