Warner Bros. Discovery(US:WBD) New York Postยท2025-10-22 20:27Core Viewpoint - Paramount Skydance CEO David Ellison is cautious about overpaying for Warner Bros. Discovery (WBD) and believes he may not need to exceed $25 per share due to various factors, including support from Donald Trump [1][3]. Bid Details - Paramount has made an offer of $24 per share for WBD, with sources indicating the exact bid was $23.50 [2]. - WBD's stock rose 11% following the news of the bid, closing at $20.53, but Ellison has no plans to increase his offer above $25 [3]. Competitive Landscape - Ellison is advised that U.S. antitrust concerns and personal animosities will hinder rival bidders, particularly Comcast, which is led by Brian Roberts, a figure Trump reportedly dislikes [3][4]. - Comcast has shown interest in acquiring WBD but faces challenges due to its ownership of MSNBC and NBC, which are viewed unfavorably by Trump [6][12]. Strategic Considerations - Zaslav, WBD's CEO, has rejected three offers from Paramount, with the last being around $24 per share, and is aiming for a sale price of up to $30 per share, valuing WBD at over $70 billion [9]. - Internal advisors suggest that Ellison may consider a hostile bid if necessary, as they believe Zaslav has limited options [10]. Regulatory Environment - There are concerns that Trump's FCC would block Netflix's potential acquisition of WBD's streaming platform due to antitrust issues, as Netflix is the leading streaming service [13]. - Amazon is also interested in WBD's assets but faces regulatory hurdles due to a consent decree with the FTC [16]. Market Position - WBD has established itself as the No. 1 studio and has the No. 3 streaming service since its formation in 2022 through the merger of Discovery Inc. and Warner Media [10].