Mystery 'Company C' bid $25B to buy Warner Bros. Discovery
What's the story
Warner Bros. Discovery has revealed that a fourth company, referred to as Company C, submitted a bid to acquire it in November in addition to Netflix, Paramount Skydance, and an unnamed Company A. The revelation was made in a Securities and Exchange Commission (SEC) filing. The document also revealed that Netflix and Paramount Skydance had submitted bids for all or part of the business on November 20.
Unidentified bidder
Company C's identity remains undisclosed
The identity of Company C, which Warner Bros. Discovery describes as an American media company, remains undisclosed. The firm's founder contacted Warner Bros. Discovery CFO Gunnar Wiedenfels on October 23 to express interest in a potential transaction with the WBD Global Networks Business. Preliminary bids from Netflix, Paramount Skydance, Company A and Company C were received on November 20.
Acquisition details
Company C's proposal included HBO Max streaming service
Company C's bid included the acquisition of Discovery Global and a 20% stake in the WBD Streaming and Studios Business, which includes Warner Bros. Discovery's HBO Max streaming service. The offer was for these businesses at $25 billion in cash, according to the filing. The unnamed company's bid also suggested a 90-day exclusivity period but did not progress to the next round of negotiations with WBD Chairman Samuel DiPiazza and senior management/advisors on November 21.
Merger valuation
Comcast's bid valued combined businesses at $81 billion
Comcast Corp.'s bid to merge its NBCUniversal department with Warner Bros. Discovery valued the company's interest in the combined businesses at a whopping $81 billion. The filing revealed that Comcast, likely to be WBD's Company A, proposed valuing Warner Bros's streaming and studio assets at $35.43 per share. However, Netflix offered $27.75 per share in cash and stock for the business.