CNBC’s David Faber said Wednesday that Netflix (NFLX) is considering the offer to buy Warner Bros. Discovery (WBD) “very seriously” as the deadline for the first round of bids nears.
“In my mind, they (Netflix) are seen as the key. If they want to own Warner Bros., they can,” Faber said on CNBC, while implying that the streaming giant does not necessarily have to buy WBD, but they could if they want to.
“The antitrust implication of owning HBO along with Netflix—that’s a tough one,” Faber added.
He also said that the deal could either hurt Netflix’s multiple, or it could be accretive up to “a fairly large number.”
For Comcast (CMCSA), Faber said the deal would be very difficult, resulting in a very complicated transaction, while also raising doubts that its bid could compete with Paramount’s (PSKY).
Recent media reports said WBD wants Paramount to offer $30 per share and buy out the entire company in a +$74B deal. Paramount initially made three bids, which were swiftly rejected.
A report by Variety also suggested the David Ellison-led company, along with a consortium of Arab sovereign wealth funds, is preparing to submit a $71B offer for WBD, which Paramount has denied.