Paramount Offers $40.4 Billion Financing Guarantee to Acquire WBD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
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Source: Newsfilter
- Financing Assurance Boosts Confidence: Paramount's offer is bolstered by a $40.4 billion personal guarantee from Larry Ellison, addressing Warner Bros. Discovery's (WBD) board concerns regarding financing sources, which may enhance shareholder confidence in the acquisition.
- Shareholder Tender Options: WBD shareholders have until January 8 to tender their shares to Paramount at $30 each, and choosing not to tender may indicate discomfort with Paramount's financing or optimism about the value of Discovery Global.
- Potential for Bidding War: If shareholders tender their shares, it could prompt Netflix to raise its $27.75 offer, potentially igniting a bidding war between Paramount and Netflix, thereby maximizing shareholder returns.
- Regulatory Approval Risks: Paramount argues that its acquisition proposal poses lower regulatory approval risks compared to Netflix's, as the combined streaming business would present less competitive threat, which may attract more shareholder support for its bid.
Analyst Views on PSKY
Wall Street analysts forecast PSKY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSKY is 14.08 USD with a low forecast of 8.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
1 Buy
7 Hold
7 Sell
Moderate Sell
Current: 11.780
Low
8.00
Averages
14.08
High
19.00
Current: 11.780
Low
8.00
Averages
14.08
High
19.00
About PSKY
Paramount Skydance Corp, formerly New Pluto Global, Inc., is a holding company. It operates through its wholly owned subsidiaries, Paramount Global (Paramount) and Skydance Media, LLC (Skydance). Paramount is a global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Its consumer brands include CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. In addition to offering streaming services and digital video products, it also provides production, distribution and advertising solutions. Skydance is a diversified media company focused on creating event-level entertainment for global audiences. Skydance develops, finances and produces live-action and animated films, television shows, sports content and interactive games worldwide. Skydance has also produced 31 seasons of live-action and animated television content across 16 series and supplies content across a range of platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
