Paramount can win long-term with or without buying Warner Bros. Discovery, says Rich Greenfield

Core Viewpoint - Warner Brothers Discovery is soliciting new bids, with a focus on the competitive landscape involving Comcast, Netflix, and Paramount, amid regulatory considerations and the valuation of assets [1][2]. Group 1: Bidding Landscape - Warner Brothers Discovery is asking bidders to submit new offers by Monday, indicating a competitive bidding process [1]. - Comcast, Netflix, and Paramount are identified as the main bidders, with Paramount appearing to have a regulatory advantage [1][2]. - The perceived need for Comcast to acquire Warner Brothers Discovery is highlighted, while Netflix's interest is somewhat surprising [2][8]. Group 2: Regulatory Considerations - Regulatory approval is a significant factor, with states like California and New York likely to influence the outcome, which may prolong the approval process [1]. - Paramount is seen as the most favorable bidder from a regulatory standpoint, but the approval process could still be lengthy [1][4]. Group 3: Valuation and Strategic Importance - The value of Warner Brothers Discovery is primarily in its HBO and Warner Brothers assets, with the linear networks contributing marginally [2][4]. - A potential merger between Paramount and Warner Brothers could create a dominant player in the TV marketplace, surpassing competitors like YouTube and Disney [4][5]. - The strategic rationale for Comcast's interest is linked to its underperforming Peacock streaming service and the need for robust content [8]. Group 4: Market Dynamics - The competitive dynamics suggest that all three companies are aggressively pursuing the acquisition due to the unique library of content available [9]. - The discussion indicates that creating original content may be a valid alternative for companies like Netflix, questioning the necessity of the acquisition [6][7].