Mystery ‘American media company’ wanted to buy Warner Bros Discovery at $25 billion in cash, new filing shows
Warner Bros. Discovery announced Wednesday that a fourth company, along with Netflix, Paramount Skydance and an unnamed Company A, also submitted bids to acquire it in November.
In a filing filed with the Securities and Exchange Commission, Warner Bros. Discovery said Nov. 20 it had received offers from Netflix and Paramount for all or part of its business. Apart from this, Company A and Company C, whose names were not disclosed, also made acquisition offers.
According to the CNBC report, Company A could be Comcast because the bid was submitted to Warner Bros. It is stated that the aim is to acquire Discovery’s film and broadcast assets; This is similar to Comcast’s offer. Warner Bros. Discovery did not mention the company by name.
However, the identity of Company C could not be disclosed. Warner Bros. Discovery did not provide many details but described itself as an American media company.
What did Company C offer to Warner Bros Discovery?
Warner Bros. Discovery announced the offer made by Company C.
The filing stated that Company C’s founder called Warner Bros. Discovery CFO Gunnar Wiedenfels on Oct. 23, signaling “his interest in a potential transaction with WBD Global Networks Business.”
Warner Bros. Discovery received preliminary offers from Netflix, Paramount Skydance, Company A and Company C on November 20.
Company C has proposed acquiring Discovery Global and 20% of WBD’s Broadcast and Studio Business, including Warner Bros. Discovery’s HBO Max streaming service. It was stated in the application that the offer was to purchase these businesses for $ 25 billion in cash.
The offer from this unnamed company also suggested a 90-day exclusivity period.
But the proposal did not make it to the next round—a Nov. 21 meeting with WBD President Samuel DiPiazza and the company’s senior management and advisors.
“Participants discussed appropriate feedback for each bidder in order to engage PSKY, Netflix, and Company A in the process and improve their bids. WBD determined that Company C’s bid was not actionable at that time,” the filing said.
Comcast’s offer
Meanwhile, Comcast Corp. is selling its NBCUniversal division to Warner Bros. The offer to merge with Discovery valued the company’s share of the combined business at $81 billion.
Warner Bros. Discovery determined that Company C’s offer was not actionable at the time.
Comcast, which WBD identifies as Company A, proposed valuing Warner Bros. broadcast and studio assets at $35.43 per share, according to the filing.
However, Warner Bros. Discovery accepted Netflix’s takeover offer, offering cash and $27.75 per share, to acquire the business.
