Britain’s competition regulator begins assessing potential antitrust concerns in the proposed $110 billion acquisition of Warner Bros. Discovery.
Britain’s Competition and Markets Authority (CMA) has initiated a review of the $110 billion takeover bid for Warner Bros. Discovery (NASDAQ:WBD), examining potential competitive concerns. The move follows months of speculation and competing offers, including interest from Netflix.
WBD shares have surged 177% over the past year but remain down 7% year-to-date. The stock trades at a forward P/E ratio of 2,500, significantly higher than the sector’s average of 42.73. UBS recently raised its price target to $31 from $30 while maintaining a Neutral rating.
The review could shape the deal’s outcome, with Paramount previously accusing Netflix of attempting to sabotage the acquisition.