Jim Cramer Discusses Warner Bros. Takeover Battle

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks Jim Cramer shared his take on. Cramer noted the battle over the company’s acquisition between Netflix and Paramount Skydance. He remarked:

“The most salient takeover battle right now is the contest for Warner Brothers Discovery. Here we have a public company that’s more like a private company, Paramount Skydance. I say that because its bid is personally funded in part by the fifth-wealthiest person in the world, Larry Ellison. His son runs the business. In the fight for Warner Brothers… Paramount is going against Netflix. Today, we get more assurances that Larry’s willing to provide backstop financing for the acquisition… $40 billion. But Netflix wants it, and you know what? I think Netflix has the blessing of the Time Warner board, and unless Ellison comes back with a huge amount of money, I don’t think they’d get it.

What I care about is that there are two bidders with big pools of capital trying to get this one asset. Netflix isn’t known as a deal maker, but they’ve surfaced out of the woodwork. Ellison personally isn’t a deal maker either, though his principal employer, Oracle, has been known to make deals. Larry’s standing up for $40.4 billion, a personal guarantee. Let’s not lose this forest or burn it down for the sake of the trees’ moment. This stock, Warner Brothers Discovery, was trading at $7 when I had dinner with CEO David Zaslav just seven months ago, and he said the company’s worth $34 a share. You know what? I think he’s going to be right. Everyone keeps talking about how expensive stocks are. Was Warner expensive at seven bucks? Isn’t that the real takeaway? It turned out to be dirt cheap. Take that, bears.”

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company that creates and distributes movies, TV shows, and streaming content.

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Disclosure: None. This article is originally published at Insider Monkey.