Early trading suggests the cable-network spinoff is being valued conservatively, a signal that could matter in the Warner Bros. Discovery takeover battle.

Paramount Skydance has launched a hostile bid to buy Warner Bros. Discovery. It comes after Netflix announced a merger with Warner Bros. Dec. 5.

The board favored Netflix's deal, which would yield more immediate benefits over one by Comcast. The NBCUniversal parent proposed merging its entertainment division with Warner Bros Discovery, creating a much larger unit that would rival Walt Disney. But it would have taken years to execute, the sources said. Comcast declined to comment.

Paramount appears to have the smoothest path Paramount Skydance moves quickly because it already cleared a similar deal. In August the company bought Paramount

The offer to shareholders comes days after Warner Bros. agreed to sell its streaming and studio business to Netflix.

The largest streaming network says it will purchase Warner Bros.’ studios and streaming assets after winning a bidding war with Comcast and Paramount.