Warner Bros. Discover (WBD.US) becomes a hotcake, attracting the interest of various parties including Paramount, Skydance, and Netflix for acquisition.

Warner Bros. Discovery (WBD.US) has rejected an offer from Paramount Skydance (PSKY.US) of nearly $24 per share. According to media reports citing an insider on Tuesday, the offer was primarily in cash. Before the media report on the acquisition was released, Warner Bros. Discovery had stated earlier on Tuesday that it would explore strategic alternative acquisition plans after receiving interest from multiple parties in acquiring the entire company, as well as interest in just its film studio and streaming business. Several media outlets reported on Tuesday that streaming giant Netflix (NFLX.US) and American cable, telecommunications, and entertainment industry leader Comcast Corporation Class A (CMCSA.US) are very interested in Warner Bros. Discovery's film studio and streaming business. During Tuesday's trading session in the US stock market, Warner Bros. Discovery's stock price rose by over 12% at one point. By the end of Tuesday's trading, the company's stock price had increased by 10.97% to $20.33. Some Wall Street analysts believe that Warner Bros. Discovery rejected Paramount Skydance's offer of nearly $24 per share, with cash as the primary component and a total consideration slightly below $60 billion, due to a perceived lack of valuation/premium. They suggest that it may be necessary to seek a higher price through a public bidding process/splitting expectations, especially considering the company's initiation of a process and introduction of multiple bidders, where the control premium may still not meet the management's expectations. Others believe that Warner Bros. Discovery had previously proposed a "spin-off into two companies" (streaming business and traditional film and television business) in June to unlock shareholder value, and the emphasis on this being an option again this week suggests that the management may believe that the value based on a separation or partial sale could be higher than the overall offer from a single buyer. Therefore, Warner Bros. Discovery's rejection of Paramount Skydance's offer close to $24 per share seems more like leaving room for "higher price + better acquisition path": by publicly assessing and introducing multiple parties, "raising prices and controlling the situation" under the dual support of spin-off expectations and bidding, rather than being completely locked in by a single buyer and a single offer.