Warner Bros. Discovery raised to buy at Argus on potential bidding war

[Warner Bros. Discovery Upfront 2022 - Show]
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Warner Bros. Discovery (NASDAQ:WBD [https://seekingalpha.com/symbol/WBD]) was raised to buy from hold at Argus on the potential for a bidding war.

"While there is no assurance a deal will actually get done, we like that WBD management has opened up the process to look at a range of alternatives to maximize the shareholder value of the WBD assets," Argus analyst Joseph Bonner wrote in a note on Tuesday. "Although valuations on the company are all over the map, we see WBD has the host of unique, iconic assets including the HBO Max streaming video service, the film and television library, and studio production/distribution assets."

Bonner has a price target of $27 for Warner Bros. Discovery (NASDAQ:WBD [https://seekingalpha.com/symbol/WBD]).

The note comes after Warner Bros. announced last Monday that it was undertaking a strategic review of its assets, [https://seekingalpha.com/news/4505976-warner-bros-discovery-explores-strategic-alternatives-amid-paramount-buyout-interest] citing multiple unsolicited interests for both the entire company and just its studio and streaming operations.

Warner Bros. has reportedly rejected several bids from Paramount Skydance (PSKY [https://seekingalpha.com/symbol/PSKY]) . Comcast (CMCSA [https://seekingalpha.com/symbol/CMCSA]) and Netflix (NFLX [https://seekingalpha.com/symbol/NFLX]) are also interested in WBD's assets, according to multiple media accounts.

"Aside from legacy Hollywood industry or adjacent players like Apple or Amazon, WBD’s exploration of strategic alternatives also opens the door for other possible bidders from Tech companies to private equity," Bonner added.

MORE ON WARNER BROS. DISCOVERY

* Warner Bros. Discovery: I'm Not Selling Yet - Here's Why [https://seekingalpha.com/article/4833843-warner-bros-discovery-stock-remains-attractively-valued-hold]
* Warner Bros. Discovery: High Risk Of Unacceptable Bid [https://seekingalpha.com/article/4833021-warner-bros-discovery-high-risk-of-unacceptable-bid]
* Warner Bros. Discovery: The Bidders' Perspectives [https://seekingalpha.com/article/4832550-warner-bros-discovery-bidders-perspectives]
* Paramount plans to keep much of Warner Bros. Discovery intact if a merger occurs [https://seekingalpha.com/news/4508985-paramount-plans-to-keep-much-of-warner-bros-discovery-intact-if-a-merger-occurs]
* ‘Chainsaw Man: The Movie – Reze Arc’ slashes to No. 1 with $17.3M debut [https://seekingalpha.com/news/4508462-chainsaw-man-the-movie-reze-arc-slashes-to-no-1-with-17_3m-debut]