Comcast engages bank to explore WBD bid

NBCUniversal owner Comcast has joined the growing ranks of US media giants looking at a potential deal involving Warner Bros Discovery (WBD).

Goldman Sachs and Morgan Stanley have been hired by the telco to explore an offer in a move that will provide access to WBD’s so-called ‘data room’, which will allow it formulate a bid.

Comcast, owner of Sky in the UK, was also revealed late yesterday to be exploring a potential bid for the broadcast assets of ITV through its pay-TV subsidiary, sending PSB’s shares up by 15% in early trading this morning.

The US telco joins Paramount Skydance and Netflix in exploring a potential bid for WBD.

The global streamer was revealed to have hired US investment bank Moelis & Co to lead its moves earlier this month, which came after three bids from Paramount Skydance.

Comcast president Mike Cavanagh has previously admitted that the company would explore deals for “complementary” assets, with the comments  coming amid a move to spin off NBCU’s legacy cable networks into nascent entity Versant.

Paramount Skydance continues to be seen as the most likely acquirer, with the David Ellison-led outfit making its first offer in mid-September before following up with two further offers, the latter at $24 a share valuing WBD at $57bn (£43.3bn).

The third of these prompted WBD, which holds around $35bn in debt, to go public in its admission that it is looking at options after “unsolicited interest” from “multiple parties”.

These options include selling off portions of the business, or the company in its entirety, while an “alternative separation structure” could enable a merger of Warner Bros and a spin-off of Discovery Global to shareholders.

WBD chief exec David Zaslav told investors during Thursday’s Q3 earnings call that the company had an “active process underway”, with hopes to have a better understanding of next moves by the end of the year.

The US studio is continuing with preparations to split its streaming and studios operations apart from its cable networks business, despite the M&A developments.

Reuters was first to report Comcast’s move.