Dec. 10 at 5:10 AM
$PSKY $NFLX $WBD Bloomberg Just Exposed the Real Dynamics of the WBD Bidding War And It Favors PSKY, Not Netflix
This is NOT a literal “fight for a full year.” It’s a multi-round escalation cycle, typical for mega-cap media M&A, where tenders, board responses, regulatory reviews, and financing adjustments unfold in structured phases.
Bloomberg reports:
“Paramount Skydance Corp. and Netflix Inc. are girding for a battle they predict will stretch well into 2026.”
That means multiple rounds, not endless chaos. If this dragged for a full year:
1. WBD’s valuation deteriorates month by month (legacy cable + debt + declining subs).
2. Netflix bleeds faster, especially after Bloomberg confirms its stock already dropped 6% just from agreeing to buy WBD.
3. Gimme Credit downgraded NFLX debt due to “stretching itself.”
Netflix cannot afford time. Its leverage would explode above 4× EBITDA if it increases its bid — Bloomberg’s own math shows this.
Meanwhile, PSKY enters each new round with cleaner capital, fewer antitrust hurdles, direct-tender capability, and equity flexibility backed by RedBird.
Now, the most important part: Mario Gabelli’s signal
Gabelli is not “some investor.” He is one of the most respected institutional voices on Wall Street, a billionaire money manager with decades of influence.
Bloomberg quotes him clearly:
“My gut tells me we haven’t seen the seventh round yet.”
Translation in institutional language:
Gabelli expects more price discovery, more competitive tension, and higher shareholder optionality, which BENEFITS the bidder with stronger structural positioning (PSKY) and DAMAGES the bidder with stretched credit capacity
$NFLX
He is also quoted as saying it is “highly likely” he will tender his Warner Bros. shares to PSKY. That is NOT casual commentary that is a signal to institutions on where the smart money believes the optimal exit is.
Bottom line:
This isn’t a year-long circus. It’s a controlled escalation and every round moves leverage AWAY from Netflix and TOWARD Paramount Skydance.
https://www.bloomberg.com/news/articles/2025-12-10/warner-bros-bidders-brace-for-a-fight-that-will-last-months
