Paramount's new bid gives Warner Bros. more certainty on financing, says Wolfe's Peter Supino

Core Viewpoint - The ongoing bidding war for Warner Brothers between Paramount and Netflix is intensifying, with Paramount's recent adjustments increasing its chances of winning, although uncertainties remain regarding the final outcome [1]. Group 1: Bidding Dynamics - Paramount's offer stands at $30 per share, while Netflix's offer is at $27.75, with the latter including an additional value of approximately $1 per share from Warner's cable network portfolio [3][5]. - The market is currently valuing both bids similarly, with estimates suggesting that both offers could end up around $29 per share when considering breakup fees and additional values [6][7]. - There is speculation that both Paramount and Netflix may raise their bids, as Paramount has already made multiple offers and Netflix has significant financial capacity to increase its bid [8][9]. Group 2: Strategic Importance - The merger is strategically crucial for Paramount, as it lacks the scale necessary to compete effectively in the streaming market, and acquiring Warner would significantly enhance its position [3][11]. - Netflix is viewed as having the best capability to monetize Warner's assets, making it a strong contender in the bidding process [2]. - The potential acquisition of Warner's assets is seen as beneficial for Netflix, despite the current market uncertainty affecting its stock [10][11].