A recent Warner Bros. Discovery filing revealed that Comcast’s offer to merge its NBCUniversal division with Warner Bros. valued Comcast’s interest in the combined businesses at $US81 billion ($123 billion AUD). The document described a bidder, identified as Comcast, whose proposed merger valued Warner Bros.’ streaming and studio assets at $US35.43 a share. The offer comprised $US5.25 a share in cash and a 49 per cent stake for Warner Bros. shareholders in a new entity incorporating the assets of both companies.
Comcast believed that combining its entertainment assets with those of Warner Bros. would create an entity more valuable than the separate businesses, citing cost-cutting and growth opportunities. Comcast, a Philadelphia-based cable-TV and broadband provider with a stock market valuation of about $US111 billion, would have held a 51 per cent stake in the new business. The company provides cable and internet services to homes and businesses, and also owns NBCUniversal. Both Comcast and Warner Bros. declined to comment on the filing.
According to the filing, Comcast’s offer excluded cable-TV networks such as USA, CNBC, and MS Now, which are slated for spin-off to shareholders as Versant Media Group. Comcast President Mike Cavanagh mentioned at a UBS conference earlier in the month that their bid entailed combining the NBCUniversal media, theme park, and studio businesses with Warner Bros’ studios and streaming divisions. Cavanagh noted that Comcast’s bid was relatively low in cash offered, but included a significant equity stake in the combined entertainment company.
Ultimately, Warner Bros. accepted an offer of $US27.75 a share in cash and stock from Netflix. Warner Bros. plans to separately distribute shares in its cable networks to its investors before finalising that deal.
