Comcast Corporation Class A (CMCSA.US) exposes the plan to acquire Warner Bros. (WBD.US): cash and equity combination offer with a total valuation of $8.1 billion in equity.

According to a document disclosed by Warner Brothers Discovery Company (WBD.US), Comcast Corporation Class A (CMCSA.US) proposed to merge its NBCUniversal business with Warner Brothers Discovery in a deal that values the cable TV giant's stake in the combined business at up to $81 billion. The document, released on Wednesday, mentioned a bidder referred to as "Company A," with sources confirming that it is Comcast Corporation Class A. The proposal values Warner Brothers Discovery's streaming and film assets at $35.43 per share. The bid includes $5.25 per share in cash, as well as 49% ownership in the new entity for Warner Brothers Discovery shareholders, which will include assets from both companies. Sources indicate that Comcast Corporation Class A believes that by cutting costs and seizing growth opportunities, merging its entertainment assets with Warner Brothers Discovery's assets will create a more valuable new entity than the two companies operating independently. Comcast Corporation Class A will hold a 51% stake in the new business. Comcast Corporation Class A, a cable TV and broadband provider based in Philadelphia, has an overall market value of around $111 billion. Both companies have declined to comment. The document also notes that Comcast Corporation Class A's offer does not include cable TV networks such as USA, CNBC, and MSNBC, which are set to be spun off to shareholders as the Versant Media Group. The bidder has been using Warner Brothers Discovery's total share capital of 2.59 billion shares in its calculations. Earlier this month, Comcast Corporation Class A President Mike Cavanagh revealed at an investor conference hosted by UBS Group AG that the core of the company's acquisition plan is to integrate NBCUniversal's media, theme park, and film production business with Warner Brothers Discovery's film studio and streaming division. Cavanagh stated that in terms of the cash offered, Comcast Corporation Class A's bid "is relatively low compared to other proposals," but "we do provide a significant portion of the equity of the combined entertainment company," he added. It is worth noting that Warner Brothers Discovery has accepted a cash and stock acquisition offer from Netflix (NFLX.US) for $27.75 per share and plans to spin off its cable TV networks separately and distribute them to existing shareholders before the completion of the deal.