[NEW YORK] Warner Bros Discovery was fielding a second round of bids on Monday (Dec 1), including a mostly cash offer from Netflix, in an auction that could wrap up in the coming days or weeks, according to sources familiar with the discussions.
Bankers for Paramount Skydance, Comcast and Netflix worked over the long Thanksgiving weekend on improved offers for all or part of Warner Bros, said the sources, who asked not to be identified discussing non-public information.
The offers are binding, which means the board is in a position to sign off on a deal quickly if its goals are met, one of the sources said. The company has not described the latest offers as final, however, and another bid would be considered if the terms are attractive.
Netflix, the streaming industry leader, is working on a bridge loan that totals tens of billions of US dollars, one the sources said.
Shares of Warner Bros closed at US$23.87 Monday in New York, giving the company an equity market value of US$59 billion.
Warner Bros, the parent of HBO, CNN and its namesake film studio, officially put itself up for sale in October after receiving multiple unsolicited offers for all or part of the company. Paramount, now led by technology scion David Ellison, kicked off the process with three offer for all of the company, including its cable TV networks.
Comcast and Netflix are interested only in the Warner Bros studios and the HBO Max streaming service. Should one of their bids be accepted, Warner Bros would continue with plans to spin off its cable channels as Discovery Global. The spinoff could occur by the middle of next year. BLOOMBERG
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