WBD Acquisition Thread

[harry580]

I'm afraid they will bring more harm though

to paramount so they can walk away from getting Warner bros and Warner bros can go with the planned split?

 

[RandomMe]

to paramount so they can walk away from getting Warner bros and Warner bros can go with the planned split?

I don't think so

 

[Daikun]

I don't think so

Those are really the only two options right now. WBD is stuck with a trolley problem.

Track A: Approve the Skydance merger and remain together, although be saddled with debt and potential closures.
Track B: Decline the Skydance merger and continue with the proposed split.

Both options are disastrous for the company.

 

[harry580]

Those are really the only two options right now. WBD is stuck with a trolley problem.

Track A: Approve the Skydance merger and remain together, although be saddled with debt and potential closures.
Track B: Decline the Skydance merger and continue with the proposed split.

Both options are disastrous for the company.

what company?, paramount or Warner bros, because if paramount, can they always get lionsgate or if Warner bros, maybe Warner bros don't has to deal with monopolies and the rumored reworked cnn and debt

 

[Daikun]

what company?, paramount or Warner bros, because if paramount, can they always get lionsgate or if Warner bros, maybe Warner bros don't has to deal with monopolies and the rumored reworked cnn and debt

Warner, obviously. As I said, WBD is stuck with a trolley problem.

 

[RandomMe]

So WBD has to approve the Skydance merger in order to do something?

 

[Daikun]

So WBD has to approve the Skydance merger in order to do something?

They already did. They had their vote last week.
All that remains now is the legal system.

 

[Camping My TV Set]

Remind me again, what good will the lawsuits do in stopping this merger?

delay. there's a reason ellison insists on closing this merger by september. if he can't, he's forced to pay shareholders more (the ticking fee) and there's already a struggle funding the base acquisition in the first place. the thought process is that he'll be too financially strained to continue pursuing it.

frankly, the fact he chose september of this year as a close date for a merger triple the size what he bought paramount for (a very unlikely if not impossible prospect) speaks volumes on how inflated his ego actually is

 

[harry580]

well, tegna & nexstar was approved the shareholders and that was halted, it can be the same with this

 

[Daikun]

well, tegna & nexstar was approved the shareholders and that was halted, it can be the same with this

That's what most of us are hoping for, really.

 

[zakawer2]

@RegularCapital Has WBD's original planned split into Warner Bros. and Discovery Global been fully canceled, even taking into account the possibility of the merger with Paramount failing to happen altogether?

The Netflix plan involved WBD splitting up into Warner Bros. and Discovery Global, with the former company becoming a wholly owned subsidiary of Netflix while the latter would remain fully independent.

 

[Moe]

Remind me again, what good will the lawsuits do in stopping this merger?

It is 50% chance.

 

[RegularCapital]

@RegularCapital Has WBD's original planned split into Warner Bros. and Discovery Global been fully canceled, even taking into account the possibility of the merger with Paramount failing to happen altogether?

The Netflix plan involved WBD splitting up into Warner Bros. and Discovery Global, with the former company becoming a wholly owned subsidiary of Netflix while the latter would remain fully independent.

The whole idea of the Paramount merger is to buy WBD as a whole, so yes, the split has been cancelled. If the Paramount merger gets stopped by government scrutiny, then yes, a split could still happen.

 

[lowell]

Those are really the only two options right now. WBD is stuck with a trolley problem.

Track A: Approve the Skydance merger and remain together, although be saddled with debt and potential closures.
Track B: Decline the Skydance merger and continue with the proposed split.

Both options are disastrous for the company.

I wouldn't even completely rule out a Track C at this point where things can just continue as normal, though.

If Skydance's pursuit completely collapses & the $7B check combined with the ongoing debt reductions together has a meaningful impact in whittling down the debt load, though, there's also a possibility for WarnerDiscovery to stay as is with no split.

The S&S/GN split move would've just made suitors come earlier, not delay it and then saddle GN with most of the debt load.

Zaslav can just fold Discovery+ into HBO Max to bring down the streaming operation costs, finish the international expansion, and continue to keep paying down the debt further because that would just raise the overall valuation over time.

Once that's all mostly done, Zaslav & Malone can begin another sale process of the company on their own accords.

Even Zaslav renewed Widenfels's contract for 2 more years recently and he wouldn't make that long of an extension if he didn't see risk in Ellison's pursuit here:

Warner Bros. Discovery Finance Chief Gunnar Wiedenfels Gets New Contract

The exec, who would've been spinoff CEO for Discovery Global, has been given a new employment deal through April 2028 ahead of his current contract expiring on July 10.

www.hollywoodreporter.com

 

[JulianRO]

Track B: Decline the Skydance merger and continue with the proposed split.

Even after the split there will be attempts to buy the separate companies, I'm 100% sure about that.

 

[RandomMe]

If the merger was approved, then CN shows would air on Nick Israel.

Linear carriers for CN shows were a complicated affair, after leaving Arutz HaYeladim and joining the Yes VOD platform.

 

[lowell]

Even after the split there will be attempts to buy the separate companies, I'm 100% sure about that.

Yes, the split makes them vulnerable targets and accelerates the sale process.

Staying intact would instead push that sale timeline down the road.

It's going to be inevitably sold one way or another but if you want to delay that from happening, it wouldn't make sense to do a split.

 

[JulianRO]

Paramount Making “Great Progress” on Warner Bros. Buy, Reaffirms Deal Close Timing

Revenue and adjusted EBITDA were up in Q1 as the company transforms the Paramount assets acquired last year.

www.hollywoodreporter.com

Too high expectations, as always...

 

[zakawer2]

David Ellison does seem very convinced that the merger with WBD is going to get successfully approved, that's for certain.

But how is he supposed to cope in the event that the merger gets stalled, falls through and/or gets blocked/halted etc.? Should he then just double down on prioritizing the existing Paramount assets above all else? Obviously the $7 billion termination fee would need to be paid to Warner Bros. Discovery.

 

[awinger24]

It would be funny if Access Industries decides to buy WBD taking Warner Bros. private and reuniting them with Warner Music Group bringing them back on the music publishing business again.