Comcast hires financial advisors to evaluate a potential bid for Warner Bros. Discovery.

Comcast is actively pursuing a potential acquisition of Warner Bros. Discovery’s studio and streaming operations, as reported by sources familiar with the ongoing negotiations. The parent company of NBCUniversal has taken significant steps to evaluate this opportunity, engaging financial advisors and accessing crucial financial data necessary for formulating a bid.

To bolster its assessment, Comcast has enlisted the services of Goldman Sachs and Morgan Stanley to conduct a thorough evaluation of the potential deal. Access to a data room that contains detailed financial information has been granted to Comcast, facilitating a deeper understanding of Warner Bros. Discovery’s financials and making it possible for them to craft a more informed offer.

While representatives from Comcast, Warner Bros. Discovery, Goldman Sachs, and Morgan Stanley have chosen to remain silent on the specifics of the negotiations, Comcast president Mike Cavanagh has previously articulated the company’s interest in media assets that would strategically complement its existing portfolio. Cavanagh expressed confidence that various acquisition scenarios are feasible, despite some skepticism from analysts regarding the chances of securing regulatory approval.

This skepticism is not unfounded. Observers within the industry have raised concerns about the viability of a merger, especially in light of public criticisms directed at Comcast CEO Brian Roberts by former President Donald Trump. Such external pressures could complicate regulatory review processes that companies must navigate during significant mergers and acquisitions.

Meanwhile, Warner Bros. Discovery has recently faced its own challenges and opportunities. In a recent third-quarter investor call, CEO David Zaslav highlighted the robustness of the company’s film and television operations, predicting that the HBO Max streaming service could reach 150 million subscribers by year-end. This strong performance comes amid a period of strategic evaluation for the media company, which has received multiple unsolicited offers from Paramount Skydance for a complete acquisition.

Adding to the competitive landscape, Netflix has also entered the fray by hiring Moelis & Co., an investment bank involved in previous acquisition successes in the industry, to assess a potential bid for Warner Bros. Discovery’s studio and streaming segments. As major players maneuver for position, the landscape remains dynamic, with significant implications for the future of media consolidation.

This strategic interest from Comcast and Netflix underscores the evolving market dynamics in the entertainment sector, as companies continue to seek synergies and enhance their competitive standing amid ongoing industry transformations.

Media News Source