"David Ellison's Paramount Skydance is seen as the top contender to buy Warner Bros Discovery, with analysts and experts saying the tech scion's access to deep pockets and Washington ties give him an edge in what could be the media industry's biggest merger in years. Fresh off the Paramount-Skydance deal in August, the newly minted media mogul is eyeing one of Hollywood's prized assets that is home to HBO, Warner Bros Studio and a streaming unit with more than 120 million subscribers."
"At $30 a share - the price Bank of America analyst Jessica Reif Ehrlich estimates Warner Bros Discovery could fetch in a sale - the company would be valued at about $74 billion, a figure analysts say could deter some bidders but remains within reach for Ellison, whose father Larry Ellison is the world's second-richest person with a net worth of about $330 billion."
" Apple had $36.3 billion in cash at June-end and could easily raise debt to fund a takeover but it has historically avoided large deals - its biggest remains the $3 billion Beats purchase. Netflix holds about $9.3 billion in cash and has never done a deal exceeding $1 billion, while Comcast's $9.7 billion cash pile means any bid would likely rely heavily on debt or outside partners. "It seems that Paramount appears to be in pole position," said PP Foresight analyst Paolo Pescatore."
Paramount Skydance, led by David Ellison, is the leading contender to acquire Warner Bros Discovery due to Ellison's access to substantial capital and Washington connections. Paramount recently closed a deal in August and is targeting assets including HBO, Warner Bros Studio and a streaming unit with more than 120 million subscribers. Ellison submitted a $60 billion approach that Warner Bros Discovery rejected; the company has been marketed for sale and has drawn interest from Comcast, Netflix and Apple. Analysts estimate a $30 per share price would value the company at about $74 billion. Warner Bros Discovery carries roughly $35 billion in debt and declining cable assets.
Read at Fast Company
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