Benzinga·2025-12-10 07:38Core Viewpoint - Investor Ross Gerber warns that the bidding for Warner Bros Discovery Inc. is leading to significant overvaluation of the company, describing it as a "dog asset" not worth more than $15 per share, while competitors Netflix and Paramount are bidding at $27.75 and $30 per share respectively [1][3]. Group 1: Company Valuation and Bidding Dynamics - Gerber believes that the competitive bidding environment, driven by the scarcity of major studio assets, is inflating offers for Warner Bros Discovery Inc. [3]. - He expressed skepticism about how Netflix would create value from acquiring Warner Bros, suggesting that the primary motivation is to protect its market position [3]. - Gerber noted that shareholders of Warner Bros would be content to recover their investments, indicating a lack of confidence in the company's future profitability [3]. Group 2: Market Reactions and Stock Performance - Shares of Warner Bros Discovery Inc. increased by 3.78% on Tuesday, closing at $28.26, with a slight overnight rise of 0.35% [6]. - The stock is noted to have a favorable price trend in the short, medium, and long terms, scoring high on Momentum in Benzinga's Edge Stock Rankings [6]. Group 3: Ethical and Political Considerations - Paramount's bid for Warner Bros has attracted scrutiny due to its backing by Affinity Partners, which is associated with Jared Kushner and several Middle Eastern sovereign wealth funds [5]. - Former President Trump has indicated his intention to be involved in the federal review of Netflix's potential acquisition of Warner Bros, citing concerns over market share implications [6].