Disney Irish
Premium Member
Yeah sorry to burst your bubble on that.
Anyways, at this point its Paramount's battle to lose. And I don't see any reason to think they will. However I wouldn't rule out Netflix either.
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Disney's Next Acquisition Speculation / Discussion
- Thread starter Darkprime
- Start date
Anyways, at this point its Paramount's battle to lose. And I don't see any reason to think they will. However I wouldn't rule out Netflix either.
DisneyFan32
Well-Known Member
- In the Parks
- Yes
I agree. They said the exact same thing about Fox before they changed their target from WB to them. Like Disney said, we'll see how this plays out
coffeefan
Well-Known Member
Netflix, Comcast and Paramount Prepare Bids for WBD Ahead of Pre-Thanksgiving Deadline
Comcast and Netflix are officially joining Paramount in putting bids in for Warner Bros. Discovery
www.thewrap.com
Disney Irish
Premium Member
Difference was that at the time Disney had a need for more general entertainment IP which is why they went with 21st Century in the first place. Now, like Hugh said, they don't have a need for it.
So my bet is still that Paramount get it.
Disney Irish
Premium Member
I still don't really see Comcast as making a serious bid here, their debt load is way too high ($100B) and adding WBD would almost double it.Netflix, Comcast and Paramount Prepare Bids for WBD Ahead of Pre-Thanksgiving Deadline
Comcast and Netflix are officially joining Paramount in putting bids in for Warner Bros. Discovery
coffeefan
Well-Known Member
I think it's unlikely too, but experts keep saying otherwise. We will find out soon.
BrianLo
Well-Known Member
I wouldn’t equate market cap with ability to acquire a company. WBD has already been run (doubled) in valuation and would require a share premium from where Disney is currently. It wouldn’t go for less that 300B (which would make it the largest acquisition of all time).
Likewise market cap doesn’t actually give access to that type of capital that would be required.
Disney brings in 3x the revenue of Netflix and 1.5X the operating income. Its technically the far bigger company when you back out Netflix’s forward looking valuation.
Not to say Disney cannot be acquired, but it’s probably only affordable to the seven major tech companies of which a few of them have no desire or synergy. So basically Apple, Amazon and very distantly meta, alphabet or
Microsoft. Cannot fathom why NVIDIA would want to get a media and parks company.
Why would Amazon not make a play?
Disney Irish
Premium Member
Point taken, market cap is just the easiest and usually most recognized way to compare two companies for size especially when talking about who could swallow who. But yes it’s a lot more complex than that.
The overall point was that Disney is not going to get into the middle of a bidding war with the tech giants. And Disney confirmed that yesterday, they aren’t making a play for WBD.
Disney Irish
Premium Member
While they could, and may look to kick the tires, I don’t think they will throw their hat into this bidding war.
Disney Irish
Premium Member
Seems that everyone in Washington is pushing for a Paramount take over of WB, as some just raised antitrust concerns for a Netflix merger -
variety.com
So anyone still thinking that Paramount isn't going to get WB should probably think again.
Netflix Bid for Warner Bros. Raises Antitrust Concerns, GOP Rep. Says: Streamer ‘Wields Unequaled Market Power’
A prominent Republican U.S. representative has weighed in on the bidding war for Warner Bros. Discovery -- warning that Netflix's potential acquisition of WBD's HBO Max and its entertainment studios "raises antitrust concerns that could result in a harm to consumers."
variety.com
So anyone still thinking that Paramount isn't going to get WB should probably think again.
DisneyFan32
Well-Known Member
- In the Parks
- Yes
But what if Disney can do both deal with Fox and Warner Bros., they can do something to buy WB before Paramount gets finally bid it what Bob Iger will be gone by next year, as maybe Trump might finally know about Disney buying WB or not possible if Donald Trump still thinks Paramount will buy it instead not Disney, Netflix or Comcast.Seems that everyone in Washington is pushing for a Paramount take over of WB, as some just raised antitrust concerns for a Netflix merger -
Netflix Bid for Warner Bros. Raises Antitrust Concerns, GOP Rep. Says: Streamer ‘Wields Unequaled Market Power’
A prominent Republican U.S. representative has weighed in on the bidding war for Warner Bros. Discovery -- warning that Netflix's potential acquisition of WBD's HBO Max and its entertainment studios "raises antitrust concerns that could result in a harm to consumers."
So anyone still thinking that Paramount isn't going to get WB should probably think again.
Disney Irish
Premium Member
Disney has already said they aren't going to buy WB. just yesterday. So not sure what more can be said about it. If they aren't interested they aren't interested, so no reason to think they will just jump in at the last minute.
Plus Disney would run into the same regulatory hurdles, if not more, that Netflix and maybe even Comcast is.
coffeefan
Well-Known Member
Paramount Skydance Denies That Its Warner Bros. Discovery Bid Involves Arab Sovereign Wealth Funds
Paramount has formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a $71 billion bid for WBD.
variety.com
Disney Irish
Premium Member
This would put it inline with what Disney paid for 21st Century.Paramount Skydance Denies That Its Warner Bros. Discovery Bid Involves Arab Sovereign Wealth Funds
Paramount has formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a $71 billion bid for WBD.
So yeah, its going to be tough for any other suitor to put in a bid, not impossible but this is Ellison putting an over the top bid to scare others away. And I bet they'll go up more if needed.
This is Paramount's show, don't expect any other winner here.
Disney Irish
Premium Member
They would be minority stake holders here just if they bought a large enough block of shares on the open market, Paramount would be the primary owner in this situation.
Disney Irish
Premium Member
So direct Saudi involvement might have been reported prematurely -
variety.com
" UPDATED: Paramount Skydance has denied a Variety report that the company was forming an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a bid for Warner Bros. Discovery,
“The information Variety published is categorically inaccurate,” a rep for Paramount Skydance said in a statement. “This is a confidential process, which we respect and, as such, will not be commenting until the process is over.” "
Paramount Skydance Denies That Its Warner Bros. Discovery Bid Involves Arab Sovereign Wealth Funds
Paramount has formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a $71 billion bid for WBD.
variety.com
" UPDATED: Paramount Skydance has denied a Variety report that the company was forming an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a bid for Warner Bros. Discovery,
“The information Variety published is categorically inaccurate,” a rep for Paramount Skydance said in a statement. “This is a confidential process, which we respect and, as such, will not be commenting until the process is over.” "