🎙️ podcast Analysis • December 17, 2025 • Bloomberg Intelligence Podcast

The Bidding War Paradox: When Higher Offers Create Lower Values

Media & Entertainment
Tickers
1 Pick
Conviction MEDIUM
Risk Profile 1.4/10 (MODERATE RISK)
Horizon 12-18 months
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Signal Snapshot Core Theme: Media M&A

Financing backstop resolves Paramount bid concerns

Board demands 15% premium over comparable valuations

$32.50 re-engagement threshold; $35 knockout bid; Netflix counter-response

Executive Summary

Warner Bros Discovery's board rejected Paramount's $30 per share offer as 'inadequate,' despite Paramount adding a $41 billion equity backstop from the Ellison family. Bloomberg Intelligence analyst Geetha Ranganathan calculates WBD needs at least $32.50 per share to re-engage, citing undervaluation of TV networks and Netflix termination costs. The Versaunt comparable provides critical validation: Comcast's cable network spin-off trades at 5.2x forward EBITDA versus Paramount's 4.5x valuation fo...

Key Investment Opportunity

Warner Bros Discovery Bidding War Catalyst

WBD's board rejection creates forced auction dynamic with mathematical price targets and comparable validation

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Next:
The Rejection Ritual: When Declining Suitors Reveals Strategic Desperation →

Warner Bros Discovery trades at $28.95, up 174% year-to-date, as management prepares to reject Paramount's unchanged…

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