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Warner Bros. Discovery Inc. (WBD) has reportedly received a fresh, mostly cash offer from Netflix.
Bloomberg reported on Monday, citing people familiar with the matter, that bankers for Paramount Skydance Corp., Comcast Corp. and Netflix worked over the long weekend on improved offers for all or part of Warner Bros. The offers are binding, it noted, while adding that Netflix is working on a bridge loan that totals tens of billions of dollars.
The auction for Warner Bros could wrap up in the coming days or weeks, the report added, citing unnamed sources. Warner Bros might also consider another bid, it noted.
Warner Bros put itself for sale in October following multiple offers kickstarted by Paramount which sought to buy the entire company. The company since then received initial bids from Paramount Skydance, Comcast, and Netflix and it subsequently asked the interested buyers to submit higher offers.
Comcast and Netflix, unlike Paramount, are attempting to acquire the company’s movie and television studios and streaming service called HBO Max alone. They are not interested in the company’s cable TV networks including CNN and TNT Sports.
According to Bloomberg, Warner Bros will continue with its plans to spin off its cable channels if one of their bids is accepted.
WBD stock rose 1% after hours at the time of writing. On Stocktwits, retail sentiment around WBD stayed within the ‘bearish’ territory over the past 24 hours while message volume remained at ‘low’ levels.
A Stocktwits user is of the opinion that Comcast will “aggressively pursue” WBD but Paramount holds the “key advantage” given the company’s affiliation with President Trump.
Yet another user sees better offers coming in.
WBD stock has more than doubled this year.
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