WBD To Review Non-Binding Bids

Paramount, Comcast, and Netflix have submitted separate bids to acquire all or parts of Warner Bros. Discovery, the owner of Warner Bros. studio, HBO, streaming service Max, and cable networks including CNN, TNT, and Food Network, according to The Wall Street Journal citing people familiar with the matter.

Here's what is known:

• This is just the first round and the bids are non-binding.
• Netflix and Comcast are only interested in the studio and streaming business. 
• Netflix has reportedly said it would keep Warner Bros.' theatrical commitments, preemptively assuaging nervous theater owners
• Paramount had previously submitted three bids, with the highest at $23.50
• WBD CEO David Zaslav is reportedly looking for an offer that starts with a 3, as in $30 or more, a target also set by Bank of America analyst Jessica Reif Ehrlich

Paramount has made three prior unsolicited offers that were rejected and is expected to submit a mostly cash bid around $23.50 a share, similar to its last attempt, the Journal reported.

Warner Bros. Discovery continues to advance plans to split into two companies—one holding the studios and streaming, the other the cable networks—even as it entertains bids.

Any deal would require U.S. regulatory approval. Lawmakers have already flagged potential concerns about Netflix gaining control of Max and whether that would create excessive market power in streaming. A Paramount–Warner combination would unite two legacy movie studios and a large portfolio of cable channels, likely drawing antitrust scrutiny, though the Justice Department previously approved Disney’s 2019 acquisition of Fox’s film and TV studios.