Paramount Skydance is the frontrunner for Warner Bros. Discovery's assets, says NYT's Jim Stewart

Core Viewpoint - Paramount Sky Dance is currently the front runner in the streaming market due to its compelling argument and advantages in scale and cost savings [1][4]. Streaming Market Dynamics - The streaming industry emphasizes scale, with the marginal cost of acquiring new subscribers being nearly zero, making additional revenue highly profitable [2]. - Combining Warner Brothers and Paramount subscribers could significantly enhance scale, as both companies currently hold relatively small shares of the streaming market [2][3]. Competitive Landscape - Paramount has a studio that allows for cost-cutting opportunities, even if they operate separately, which can lead to substantial savings [4]. - Comcast is positioned to benefit from acquisitions but faces challenges due to its debt levels, which may hinder its ability to compete with Paramount's financial backing [6][7]. Financial Considerations - Warner Brothers Discovery's stock is currently trading at $23.54 per share, while there are reports that potential buyers like Ellison have offered around $23.50, which may not meet Warner's expectations of $30 per share [8]. - The high asking price for Warner Brothers Discovery is seen as steep given the company's struggles to achieve profitability, raising questions about the potential return on investment for new owners [9][10]. Emotional Factors in Acquisitions - Acquiring studios often involves emotional and glamorous elements, leading to potential overpayment despite rational financial assessments [11].