Paramount Unlikely to Raise $30 Offer for WBD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Stalled Acquisition Bid: According to a Variety report, Paramount Skydance and its financial backers, including billionaire Larry Ellison, are unwilling to raise their cash offer of $30 per share for Warner Bros. Discovery, resulting in a 0.4% decline in WBD's stock price.
- Hostile Takeover Progress: Last week, Paramount Skydance extended the tender offer deadline for its $108.4 billion hostile takeover of Warner Bros. Discovery to February 20, demonstrating its determination in the competitive landscape against Netflix.
- Market Reaction: Following the acquisition news, Netflix shares rose by 0.4%, while Paramount Skydance saw a slight increase of 0.2%, indicating market sensitivity to the evolving acquisition dynamics.
- Strategic Considerations: The acquisition pressure on Warner Bros. Discovery has prompted market analysts to contemplate exit strategies, highlighting the company's vulnerability and uncertainty in the current competitive environment.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30.00 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.
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.600
Low
14.75
Averages
24.98
High
30.00
Current: 27.600
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Studios, Networks and DTC. Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to its networks/DTC services as well as third parties, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market, and others. Networks segment primarily consists of its domestic and international television networks. DTC segment primarily consists of its premium pay-TV and streaming services. Its brands and products include Discovery Channel, Max, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Warner Bros., and Cartoon Network.
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.
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