Not too long ago, we mentioned that Warner Bros. Discovery (WBD) was in a bit of a rush to finalize its sale before the holiday season. Well, it seems they weren’t kidding. Comcast (CMCSA) has officially entered the mix, engaging banks to secure a controlling stake in Warner. This bit of news has buoyed Warner investors, leading to a slight uptick in share prices during Friday’s final trading moments.
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Comcast isn’t just sitting back; they’ve roped in banking experts to help craft a deal. Meanwhile, Warner has started to share some financial details necessary for any potential offer. Comcast’s President, Mike Kavanagh, has indicated that they’re looking at media assets that could fit well with their current operations.
What’s interesting is that Kavanagh also addressed concerns about possible regulatory hurdles for the Comcast-Warner deal. “There’s probably more that can be done than the public comments that are out there,” he mentioned. While this doesn’t provide a concrete clue, it suggests he’s at least seeking advice about the viability of such a deal.
Story so far
All signs point to an impending bidding war, which is something Warner CEO David Zaslav has hoped for. We know that Paramount Skydance (PSKY) has made several bids, and Netflix (NFLX) has teamed up for a joint offer. Now, with Comcast entering the fray, it really seems to be heating up.
On the flip side, Apple (AAPL) seems to have withdrawn from this race, leaving the playing field more open. There are even whispers that Amazon (AMZN) might throw its hat in before long. However, there’s also the option that Warner could opt for a split into Discovery Global and Warner Bros. instead of entertaining offers.
Is WBD stock a good buy?
Looking at Wall Street, analysts view WBD stock as a Moderate Buy, with eight Buy ratings and ten Hold ratings over the last three months. The average price target sitting at $21.83 per share suggests a potential downside risk of about 3.62%, especially after the stock has skyrocketed by 144.23% over the last year.
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