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Warner Bros Discovery (WBD) reportedly wants Paramount Skydance to sweeten its latest bid of $23.5/share to about $30/share, as per Axios. Paramount’s offer was for 80% in cash and 20% in stock, they noted. At $30/share, Warner Bros Discovery would be valued at $74.34bn in comparison to Paramount’s existing offer valuing it at $58.23bn. Earlier in the day, Paramount denied a report that the company was teaming up with government investment funds from Saudi Arabia, Qatar, and Abu Dhabi to make a $71bn offer for WBD. Separately, the Financial Times reported that Paramount CEO David Ellison has been discussing potential financial support for a WBD bid with Saudi Arabia’s PIF and other Gulf investors. WBD stated in October that it is considering several options for its future, such as splitting up the company, selling the entire company, or selling its Warner Bros or Discovery Global businesses separately.
Shares of Warner Bros Discovery closed up 4.2% while Paramount ended 2.3% higher. Warnermedia’s 4.279% 2032s were stable trading at 86.50, yielding 6.9%. Discovery Communications’ 3.625% 2030s were also stable trading at 87.50, yielding 6.9%.
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