Paramount Skydance Launches $108.4 Billion Hostile Bid for Warner Bros Discovery
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 1 hour ago0mins
- Hostile Acquisition Proposal: Paramount launched a $108.4 billion hostile bid on Monday to challenge Netflix's dominance, despite Netflix recently securing Warner Bros' assets in a $72 billion equity deal.
- Price Comparison: Paramount's offer of $30 per share significantly exceeds Netflix's nearly $28 per share bid, indicating strong intent to acquire Warner Bros, which may trigger intense regulatory scrutiny.
- Market Share Concerns: Analysts warn that the merger between Netflix and Warner Bros could lead to market share concentration, with combined streaming revenues likely to decline unless Netflix raises prices or operates separate platforms.
- Political Influence Factors: U.S. President Trump expressed concerns over the Netflix-Warner Bros merger, suggesting it could impact market competition and indicating he would have a say in the deal, highlighting the potential influence of political factors on the transaction outcome.
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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 14.38 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.
16 Analyst Rating
2 Buy
8 Hold
6 Sell
Hold
Current: 13.365
Low
8.00
Averages
14.38
High
19.00
Current: 13.365
Low
8.00
Averages
14.38
High
19.00
TD Cowen
Hold
maintain
$14 -> $15
2025-11-12
Reason
TD Cowen
Price Target
$14 -> $15
2025-11-12
maintain
Hold
Reason
TD Cowen raised the firm's price target on Paramount Skydance to $15 from $14 and keeps a Hold rating on the shares. The firm updated its model following Q3 results and said they remain cautious on the outlook for sustained improvement at at the company however, it may be a moot point if a combination with WBD does indeed happen.
Wells Fargo
Equal Weight
maintain
$16 -> $18
2025-11-11
Reason
Wells Fargo
Price Target
$16 -> $18
2025-11-11
maintain
Equal Weight
Reason
Wells Fargo raised the firm's price target on Paramount Skydance to $18 from $16 and keeps an Equal Weight rating on the shares. The firm notes management provided a thoughtful battle plan to transform the company. Savings are big, and mostly redeployed into content/tech. Paramount+'s evolution will be the best judge of success, Wells adds.
Benchmark
Buy
maintain
$16 -> $19
2025-11-11
Reason
Benchmark
Price Target
$16 -> $19
2025-11-11
maintain
Buy
Reason
Benchmark raised the firm's price target on Paramount Skydance to $19 from $16 and keeps a Buy rating on the shares. Paramount Skydance showcased "the inherent leverage in the model" in Q3 before guiding revenue above the Street in Q4 and also beating initial 2026 consensus by about $500M on both the top and bottom lines, the analyst tells investors. While the firm doubts the skeptics will be swayed by this initial print, it adds that it has to imagine that the initial guidance "has to be something management feels they should have no problem achieving," the analyst added.
Evercore ISI
In Line
maintain
$12 -> $14
2025-11-11
Reason
Evercore ISI
Price Target
$12 -> $14
2025-11-11
maintain
In Line
Reason
Evercore ISI raised the firm's price target on Paramount Skydance to $14 from $12 and keeps an In Line rating on the shares as the company's first earnings post-merger reflect a strategic focus on growth and efficiency. While the strategic direction is "promising," the reliance on linear media remains a challenge and execution in the DTC and film segments is crucial for future success, the analyst tells investors in a post-earnings note.
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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
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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.
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