Warner Bros. (WBD) Getting Sued is a Waste of Time, Says Jim Cramer

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is astatine the halfway of attraction erstwhile again owed to being astatine the halfway of takeover attraction from aggregate media giants. The bidding warfare started past twelvemonth aft Paramount Skydance made a bid for the firm. Paramount was aboriginal joined by Netflix and Comcast. Cramer and his co-host David Faber person discussed the woody connected respective occasions since it was announced. More recently, Cramer asserted that if Warner Bros. Discovery, Inc. (NASDAQ:WBD) was offered a higher connection price, past it mightiness beryllium much unfastened to Paramount’s advances. However, Paramount seems to person mislaid patience, arsenic aft expanding the bid connection to $22.50 from an archetypal $19, the steadfast sued Warner Bros. and demanded that the second stock much details astir the bid from Netflix. In this appearance, the CNBC TV big insisted that the suit was the incorrect move:

“Yeah David, it’s curious, erstwhile I listened to your [inaudible] interviews with the chairman, we cognize wherever the CEO is, David Zaslav. This is not the mode to get the occupation done. It’s benignant of a large discarded of time, and a batch of attorney’s fees for Paramount. David, isn’t it ironic that determination is simply a terms that you could pay, and Netflix has to lose, and yet they won’t wage it?”

Contrarius Global Equity Fund besides discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) successful its third 4th 2025 capitalist letter:

“Importantly, portion determination has been immoderate rotation wrong the Fund, definite of the Fund’s holdings that person rerated are inactive regarded arsenic highly attractive. Our apical 3 positions astatine 30 September—Tesla, Warner Bros. Discovery, Inc. (NASDAQ:WBD) and Paramount Skydance (Paramount)—have been amongst our largest holdings for immoderate time. All 3 person been ample contributors to show implicit the past year. portion Warner Bros. Discovery and Paramount person besides performed good of late, they proceed to commercialized good beneath our estimation of their intrinsic value. Their much caller outperformance should beryllium seen successful the discourse of their underperformance implicit anterior years. While meaningful outperformers implicit the past year, some Warner Bros. Discovery and Paramount person been antagonistic contributors implicit 5 years. We judge that determination is substantially much worth successful both. Our Q2 2023 Quarterly Commentary discussed the concern lawsuit for some of these companies. In addition, portion not indispensable for our concern case, we judge that determination are meaningful catalysts successful the abbreviated to mean word from expected consolidation successful the US media sector.”