"Money manager Mario Gabelli said it's "highly likely" he will tender his clients' Warner Bros. Discovery Inc. shares to Paramount Skydance Corp. in an effort to spark a bidding war for the film and TV company. In an interview, Gabelli said Paramount will ultimately have to increase its $30-a-share bid for Warner Bros. and that Netflix Inc. will also likely counter with a higher offer. Saying he supports the Paramount tender is a way of signaling he prefers more competition for the company."
"'We're in the early rounds,' Gabelli said. 'Round five of a nine-round challenge.' Warner Bros. shares were up 3.8% to $28.26 at the close in New York on Tuesday. The longtime media investor attended Paramount's presentation at a UBS conference on Tuesday and walked away impressed. Management 'did a very good job' addressing potential regulatory challenges including at the state level, he said. Gabelli's firm and funds hold almost 5.7 million Warner Bros. shares, according to data compiled by Bloomberg, worth about $160 million based on Tuesday's closing price. He also owns shares in Paramount and Netflix."
Mario Gabelli indicated he will likely tender his clients' Warner Bros. Discovery shares to Paramount Skydance to provoke higher bids and a potential bidding war. He expects Paramount to boost its $30-a-share offer and anticipates Netflix may counter with a higher proposal. Gabelli prefers the Paramount tender because it is an all-cash offer that does not rely on publicly traded stock or a cable-network spinoff. He attended Paramount's UBS presentation, praised its regulatory handling, holds about 5.7 million Warner Bros. shares worth roughly $160 million, and his firm bought additional shares of Marcus Corp.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]