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Since Ellison's initial overture at roughly $20 per share, Warner Brothers' stock has climbed, reflecting investor optimism about the potential for higher bids. Currently trading around $18.45, the stock has shown upward momentum, driven by rumors of a bidding war. Investors anticipate that as negotiations intensify, bidders will have to increase their offers to reach what Warner’s board and shareholders might consider fair value.
Zazlov, Warner's CEO, is known for his strategic patience, often holding out for higher bids rather than accepting the first offer. This approach aims to maximize shareholder value, provided the bid exceeds internal valuation estimates and clears regulatory and shareholder approval hurdles.