"Paramount said in a letter on Thursday that it valued WBD's cable TV networks at $0.00 per share, when including expected debt and other costs. The letter came a day after WBD rebuffed Paramount's attempted acquisition for an eighth time in favor of Netflix's offer. In the letter, Paramount acknowledged "the theoretical possibility" that WBD's cable assets "could trade with up to ~$0.50 per share" of value."
"Then, in an SEC filing on December 22, Paramount said Discovery Global could be worth $1.40 per share based on a Wall Street consensus of the pre-launch value of Versant, a new cable TV company spun off of Comcast. Paramount's new analysis is based on the poor stock performance of Versant since its start of trading on Monday, as well as the high debt load that Discovery Global would carry."
Paramount Skydance valued Warner Bros. Discovery's cable TV networks at $0.00 per share after accounting for expected debt and other costs, while acknowledging a theoretical upside of roughly $0.50 per share. Paramount is pursuing a hostile $30-per-share bid for all of WBD. Netflix offered $27.75 per share in cash and stock for streaming and studio assets only, excluding the cable networks. Paramount argues that a lower Discovery Global valuation, which houses the cable networks, makes its proposal comparatively stronger. The analysis cites weak Versant stock performance and a high debt load for Discovery Global.
Read at Business Insider
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