Warner Bros.: Pricing Regulatory Certainty In The Paramount-Netflix Bidding War
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Summit Research10.99K FollowersFollow5ShareSaveCommentsSummaryThe competing bids between Paramount-Skydance and Netflix extends well beyond headline price comparisons, as their differing regulatory risk profiles place a material impact on time-to-value for Warner Bros. Discovery, Inc. shareholders.PSKY's all-cash bid's predicated on an asserted regulatory advantage, offering a faster and more cost-efficient path to value realization for WBD shareholders compared to Netflix's more complex and risk-exposed proposal.In the following analysis, we will attempt to quantify the economic premium demanded by impending regulatory challenges facing the Netflix and PSKY proposals.With both bidders possessing financial capacity to raise their offers, escalating competitive tension will ultimately benefit WBD shareholders, reinforcing upside towards management's $40 per share valuation target for the company. JHVEPhoto/iStock Editorial via Getty Images The intensifying bidding war for Warner Bros. Discovery, Inc. (WBD) has largely been framed as a dispute between Paramount Skydance Corporation (PSKY) and Netflix, Inc.’s (NFLX) respective quantified offers. Specifically, WBDThis article was written bySummit Research10.99K FollowersFollowSummit Research focused on finding fundamental- and catalyst-driven long/short ideas in the tech sector. Key industries covered include big tech, electric vehicles and autonomous mobility, semiconductors, software, and AI.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.