Comcast Corp (NASDAQ:CMCSA) CEO Brian Roberts is pushing aggressively into the second round of bidding for Warner Bros. Discovery Inc (NASDAQ:WBD) as he looks to revive the company's weakening media portfolio.
• CMCSA is showing downward pressure. Stay ahead of the curve here.
Sources told the New York Post he is considering a bid that could reach $27 to $28 per share for Warner Bros. Discovery's studio and streaming assets — a premium over Paramount Skydance Corp’s (NASDAQ:PSKY) roughly $25 per share, $60 billion offer for the entire company.
That would also likely top Netflix Inc's (NASDAQ:NFLX) first-round proposal for the same assets.
Also Read: Comcast Beats Q3 Estimates As Theme Parks Shine, Broadband Losses Mount
Warner Bros. Discovery stock gained 126% year-to-date.
Warner Bros. Discovery gained after the board launched a strategic review to boost shareholder value, as The Wall Street Journal reported Paramount Skydance, Comcast and Netflix are preparing bids.
The board began the review after unsolicited interest from multiple parties and is weighing options ranging from a full sale to separate deals for its Global Networks assets — including CNN, TNT, and Discovery Channel — or its Streaming & Studios division.
Initial nonbinding bids were due Nov. 20, with a target to complete the auction by year-end.
The Ellison family and RedBird Capital Partners back Paramount's offer.
Warner Bros. is already restructuring into two businesses — one for studios and streaming, another for cable networks — and clarified that change-in-control terms in CEO David Zaslav's contract won't impede internal moves needed to pursue strategic alternatives.
Roberts aims to secure Warner Bros. Discovery's top-ranked Hollywood studio and HBO Max to bolster Comcast's lagging Peacock streamer and shrinking cable business.
Analysts warn Comcast risks losing relevance if it fails to win Warner Bros. Discovery.
Comcast stock tanked over 29% year-to-date as customers cut the cord for streaming services such as Netflix and flocked to fiber and 5G home internet plans offered by AT&T, Verizon Communications and T-Mobile US.
Despite expected pushback from the Trump administration over antitrust concerns, Roberts appears ready to fight in court to get the deal approved.
Paramount Skydance remains the favored bidder given its bid for all of Warner Bros. Discovery and fewer regulatory hurdles.
Netflix continues to pitch that its acquisition would also face lighter scrutiny.
As the Dec. 1 deadline for second-round bids approaches, the Warner Bros. Discovery board must decide whether to gamble on Comcast's higher-stakes offer or choose a cleaner, full-company sale to Ellison.
CMCSA Price Actions: Comcast stock was trading higher by 0.094% to $26.82 at publication on Friday. Warner Bros stock was up 0.65% at $24.04.
Read Next:
Photo: Daniel J. Macy via Shutterstock
