Comcast (CMCSA.US) bid for Warner (WBD.US) plan revealed: the cash plus equity portfolio quoted a valuation of 81 billion US dollars of equity

The Zhitong Finance App learned that according to a document from Warner BD.US (WBD.US), Comcast (CMCSA.US) proposed merging its NBCUniversal (NBCUniversal) business with Warner Bros. Discovery. The proposal valued the cable TV giant's equity in the post-merger business as high as 81 billion US dollars.

The document, which was released on Wednesday, mentioned a bidder known as “Company A,” and people familiar with the matter confirmed that it was Comcast. The company's merger proposal values Warner Bros. Explors' streaming and video assets at $35.43 per share, according to the documents. The bid consists of $5.25 per share in cash and 49% of the shares held by Warner Bros. Explorers shareholders in the new entity, which will include the assets of both companies.

People familiar with the matter said that Comcast believes that by cutting costs and seizing growth opportunities, merging its entertainment assets with assets explored by Warner Bros. will create a new entity with more value than the two companies operating independently. Comcast will own 51% of the new business.

The Philadelphia-based cable and broadband provider Comcast has an overall stock market value of approximately $111 billion. Both companies declined to comment.

At the same time, the document indicates that Comcast's bid does not include cable television networks such as USA, CNBC, and MS Now, which will soon be spun off to shareholders as Versant Media Group. According to information, the bidders have always used Warner Bros. Exploration's total share capital in the calculation is 2.59 billion shares.

Earlier this month, Comcast President Mike Cavanagh revealed at an investor conference hosted by UBS that the core of the company's acquisition plan is to integrate NBC Global's media, theme park and film production businesses with the film and television studios and streaming departments of Warner Bros. Exploring.

Cavanagh said Comcast's bid was “lower than other proposals” in terms of the cash provided, “but we did provide a significant portion of the combined entertainment company's equity,” he added.

It is worth mentioning that Warner Bros. Exploration has accepted Netflix (NFLX.US)'s cash plus share purchase offer of $27.75 per share, and plans to split and distribute its cable network shares separately to existing shareholders before the transaction is completed.