Dec 8 (Reuters) – Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros Discovery <WBD.O, as it looks to scupper the Hollywood studio’s deal with Netflix, in a last-ditch effort to create a media powerhouse that would challenge the dominance of the streaming giant.
EMARKETER SENIOR ANALYST ROSS BENES:
“The Warner Bros Discovery acquisition is far from over. Netflix is in the driver’s seat but there will be twists and turns before the finish line. Paramount will appeal to shareholders, regulators and politicians to try to stymie Netflix. The battle could become prolonged.”
CRAIG HUBER, HUBER RESEARCH PARTNERS
“Paramount should be very careful taking on the amount of debt they are proposing to fund buying Warner Bros. Discovery, in our opinion, regardless of the synergies given the long-term secular revenue pressure the legacy businesses face which are not going away. Debt is not your friend with media stocks. Did putting CBS and Viacom together work out?”
(Reporting by Jaspreet Singh, Arnav Mishra, Arpan Varghese in Bengaluru Editing by Anil D’Silva)
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