"David Ellison's latest attempt to acquire Warner Bros. Discovery was rebuffed on Wednesday, but it hasn't been all bad news for the Paramount Skydance CEO. Paramount's argument that its offer is superior to Netflix's received an unexpected boost this week from the poor stock performance of Versant, the spinoff of Comcast's cable assets, including CNBC and MS NOW (formerly MSNBC). On Wednesday, WBD rejected Paramount's eighth bid, telling shareholders and employees that Netflix's offer to buy"
"One key question when comparing Netflix and Paramount's bids centers on the value of WBD's TV networks. There's a difference of $2.25 per share between Paramount's bid for the entire company and Netflix's bid, which excludes those cable networks. If the networks are worth $2.25 per share or more, Netflix's proposal starts to look like a no-brainer. If they're worth substantially less than that, Paramount's price of $30 per share for the whole business may look more attractive."
Warner Bros. Discovery rejected Paramount Skydance's eighth all-cash $30-per-share offer to buy the entire company. WBD said Netflix's proposal to buy its studio and streaming business for $27.75 per share in cash and stock is a better deal. Paramount's superiority claim depends on the value of WBD's cable networks. Versant's poor stock debut, after spinning off Comcast's cable assets including CNBC and MS NOW, undermines confidence in cable asset values. The bids differ by $2.25 per share, so the networks' valuation is pivotal to which offer is more attractive. If enough shareholders accept lower cable valuations, the WBD board could reconsider.
Read at Business Insider
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