Warner Bros. Discovery and Paramount Skydance Deal Talks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy WBD?
Source: CNBC
- Stock Price Surge: Shares of Warner Bros. Discovery rose 2.4% and Paramount Skydance jumped nearly 4% after Netflix granted a seven-day waiver for deal talks, reflecting market optimism about a potential transaction between the two media giants.
- Acquisition Rumors: Health tech leader Masimo's shares surged over 33% following reports from The Wall Street Journal and Financial Times that it is nearing a $10 billion acquisition deal with Danaher at $180 per share, indicating strong market interest in the deal.
- Earnings Beat: DTE Energy Company saw its shares increase by 2% after reporting fourth-quarter and fiscal year 2025 earnings that exceeded expectations, although its 2026 guidance was at the lower end of forecasts, suggesting cautious sentiment about future performance.
- Investor Activity: Norwegian Cruise Line Holdings' stock rose 7.5% after reports indicated that Elliott Investment Management has acquired over a 10% stake and plans to advocate for changes to improve the company's performance, highlighting investor focus on its future direction.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.990
Low
14.75
Averages
24.98
High
30.00
Current: 27.990
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.
Netflix Allows Reopening Talks with Paramount for Warner Bros Deal
- Merger Agreement Changes: Netflix has allowed Warner Bros to reopen negotiations with Paramount for a limited seven-day waiver period under its merger agreement, demonstrating flexibility in response to market dynamics, which may impact investor confidence.
- Price Target Increase: Analyst Gary Black has set a price target of $98 for Netflix, based on an expected EPS of $5.70 in 2030, reflecting an optimistic outlook on the company's long-term growth potential, which could attract more investor interest.
- Shareholder Response: Despite Paramount's recent cash offer of $30 per share, the Warner Bros board continues to unanimously support the Netflix deal, indicating trust in the value of the Netflix transaction, which may influence shareholder voting decisions.
- Market Sentiment Analysis: Although Netflix's stock has fallen 27% over the past year, retail investor sentiment around NFLX remains neutral, indicating a cautious optimism regarding potential future returns.
See More
David Einhorn's Greenlight Capital Increases Stakes in Warner Bros. Discovery and Others
- Increased Holdings: David Einhorn's Greenlight Capital disclosed new stakes in Warner Bros. Discovery (WBD) with 1.53 million shares, BKV with 1.29 million shares, and Slide Insurance Holdings (SLDE) with 1.15 million shares during Q4 2025, indicating confidence in their growth potential.
- Boosted Positions: The hedge fund raised its holdings in Graphic Packaging Holding Company (GPK) from 4.71 million shares to 8.42 million shares and Capri Holdings (CPRI) from 2.69 million shares to 4.77 million shares, suggesting a bullish outlook that could drive stock prices higher.
- Reduced and Closed Positions: Greenlight Capital also exited its positions in Seadrill (SDRL) and HP (HPQ), while reducing its stake in PENN Entertainment (PENN) to 6.04 million shares and Victoria's Secret (VSCO) to 1.74 million shares, reflecting a cautious stance on these companies' future performance.
- Market Implications: The increase in Warner Bros. Discovery shares may positively impact its stock price, especially in light of discussions with Paramount for a potential deal, highlighting market interest in media industry consolidation.
See More
Paramount Advances Tender Offer Amid Netflix Merger Talks
- Acquisition Proposal Competition: Paramount continues to advance its tender offer, asserting that its all-cash bid of $30 per share is superior to Warner Bros. Discovery's (WBD) merger proposal with Netflix, which ranges from $21.23 to $27.75, highlighting Paramount's strong position in the acquisition market.
- Negotiation Window Opened: Warner Bros. Discovery has reopened talks with Paramount under a limited seven-day waiver granted by Netflix, even as it plans to hold a shareholder vote on March 20 to approve the merger with Netflix, indicating flexibility in its acquisition strategy.
- Shareholder Voting Pressure: Paramount is urging WBD shareholders to support its acquisition proposal, emphasizing the superiority of its cash offer, which could influence the upcoming shareholder vote, especially in the current market environment.
- Market Sentiment Analysis: Despite a 4.5% decline in Paramount's stock over the past year, retail sentiment on the social media platform Stocktwits has trended bullish, reflecting investor confidence in its future prospects.
See More
Paramount Skydance Acknowledges Waiver Ending February 23
- Waiver Period Conclusion: Paramount Skydance has acknowledged that its seven-day waiver will end on February 23, a decision that could impact the company's financial arrangements and future financing plans.
- Financial Implications: The end of this waiver period means the company must reassess its financial condition in the short term to ensure it can meet upcoming financial obligations, thereby avoiding potential default risks.
- Market Reaction: Investors may respond cautiously to this news, especially in the current market environment where any financial uncertainty could lead to stock price volatility.
- Strategic Adjustments: The company may need to consider adjusting its financing strategy to address potential liquidity pressures following the waiver's conclusion, ensuring the stability of its long-term operations.
See More
Paramount and Warner Bros. Reach Negotiation Waiver
- Negotiation Waiver Agreement: Warner Bros. Discovery has reached an agreement with Netflix to grant Paramount a 7-day negotiation waiver, which means Paramount can negotiate without a time limit, potentially affecting future merger dynamics despite relinquishing its right to prioritize Paramount's $30 cash offer.
- Shareholder Meeting Arrangement: Warner Bros. Discovery plans to hold a special shareholder meeting on March 20 to seek approval for the merger with Netflix, with expected compensation for shareholders ranging from $21.23 to $27.75, indicating urgency in their merger negotiations.
- Paramount's Superior Offer: Paramount's cash offer of $30 per share, along with a $0.25 per-share quarterly ticking fee, provides a faster and more certain path to closing a transaction, which may attract Warner shareholders to its proposal and enhance its competitive position in the market.
- Ongoing Acquisition Push: Despite the unusual actions taken by Warner's board, Paramount is prepared to engage in constructive discussions while continuing to advance its tender offer, demonstrating its proactive stance and strategic intent in the media industry consolidation.
See More
CBS Restricts Colbert from Interviewing Talarico Due to FCC Pressure
- Network Controversy: CBS barred Colbert from interviewing Texas Rep. Talarico due to concerns over violating FCC's equal opportunity rules, highlighting media self-censorship under political pressure, which could impact content diversity and freedom.
- FCC Guidance Impact: The FCC recently reminded networks of the 1934 law requiring equal coverage for political candidates, leading to restrictions on Colbert's show, reflecting potential government interference in media content that may erode public trust in press freedom.
- Talarico's Response: Talarico shared a link to his interview with Colbert on social media, accusing the network of threatening free speech and labeling this as a form of “cancel culture” from the top, which could influence voter support for the Democratic Party.
- Industry Reaction: FCC Commissioner Gomez criticized CBS's decision as another example of corporate capitulation, urging broadcasters to resist political pressure and uphold press freedom, indicating the vulnerability of media in the face of government intervention, which may affect future news reporting.
See More
Netflix Allows Reopening Talks with Paramount for Warner Bros Deal
- Merger Agreement Changes: Netflix has allowed Warner Bros to reopen negotiations with Paramount for a limited seven-day waiver period under its merger agreement, demonstrating flexibility in response to market dynamics, which may impact investor confidence.
- Price Target Increase: Analyst Gary Black has set a price target of $98 for Netflix, based on an expected EPS of $5.70 in 2030, reflecting an optimistic outlook on the company's long-term growth potential, which could attract more investor interest.
- Shareholder Response: Despite Paramount's recent cash offer of $30 per share, the Warner Bros board continues to unanimously support the Netflix deal, indicating trust in the value of the Netflix transaction, which may influence shareholder voting decisions.
- Market Sentiment Analysis: Although Netflix's stock has fallen 27% over the past year, retail investor sentiment around NFLX remains neutral, indicating a cautious optimism regarding potential future returns.
See More
David Einhorn's Greenlight Capital Increases Stakes in Warner Bros. Discovery and Others
- Increased Holdings: David Einhorn's Greenlight Capital disclosed new stakes in Warner Bros. Discovery (WBD) with 1.53 million shares, BKV with 1.29 million shares, and Slide Insurance Holdings (SLDE) with 1.15 million shares during Q4 2025, indicating confidence in their growth potential.
- Boosted Positions: The hedge fund raised its holdings in Graphic Packaging Holding Company (GPK) from 4.71 million shares to 8.42 million shares and Capri Holdings (CPRI) from 2.69 million shares to 4.77 million shares, suggesting a bullish outlook that could drive stock prices higher.
- Reduced and Closed Positions: Greenlight Capital also exited its positions in Seadrill (SDRL) and HP (HPQ), while reducing its stake in PENN Entertainment (PENN) to 6.04 million shares and Victoria's Secret (VSCO) to 1.74 million shares, reflecting a cautious stance on these companies' future performance.
- Market Implications: The increase in Warner Bros. Discovery shares may positively impact its stock price, especially in light of discussions with Paramount for a potential deal, highlighting market interest in media industry consolidation.
See More
Paramount Advances Tender Offer Amid Netflix Merger Talks
- Acquisition Proposal Competition: Paramount continues to advance its tender offer, asserting that its all-cash bid of $30 per share is superior to Warner Bros. Discovery's (WBD) merger proposal with Netflix, which ranges from $21.23 to $27.75, highlighting Paramount's strong position in the acquisition market.
- Negotiation Window Opened: Warner Bros. Discovery has reopened talks with Paramount under a limited seven-day waiver granted by Netflix, even as it plans to hold a shareholder vote on March 20 to approve the merger with Netflix, indicating flexibility in its acquisition strategy.
- Shareholder Voting Pressure: Paramount is urging WBD shareholders to support its acquisition proposal, emphasizing the superiority of its cash offer, which could influence the upcoming shareholder vote, especially in the current market environment.
- Market Sentiment Analysis: Despite a 4.5% decline in Paramount's stock over the past year, retail sentiment on the social media platform Stocktwits has trended bullish, reflecting investor confidence in its future prospects.
See More
Paramount Skydance Acknowledges Waiver Ending February 23
- Waiver Period Conclusion: Paramount Skydance has acknowledged that its seven-day waiver will end on February 23, a decision that could impact the company's financial arrangements and future financing plans.
- Financial Implications: The end of this waiver period means the company must reassess its financial condition in the short term to ensure it can meet upcoming financial obligations, thereby avoiding potential default risks.
- Market Reaction: Investors may respond cautiously to this news, especially in the current market environment where any financial uncertainty could lead to stock price volatility.
- Strategic Adjustments: The company may need to consider adjusting its financing strategy to address potential liquidity pressures following the waiver's conclusion, ensuring the stability of its long-term operations.
See More
Paramount and Warner Bros. Reach Negotiation Waiver
- Negotiation Waiver Agreement: Warner Bros. Discovery has reached an agreement with Netflix to grant Paramount a 7-day negotiation waiver, which means Paramount can negotiate without a time limit, potentially affecting future merger dynamics despite relinquishing its right to prioritize Paramount's $30 cash offer.
- Shareholder Meeting Arrangement: Warner Bros. Discovery plans to hold a special shareholder meeting on March 20 to seek approval for the merger with Netflix, with expected compensation for shareholders ranging from $21.23 to $27.75, indicating urgency in their merger negotiations.
- Paramount's Superior Offer: Paramount's cash offer of $30 per share, along with a $0.25 per-share quarterly ticking fee, provides a faster and more certain path to closing a transaction, which may attract Warner shareholders to its proposal and enhance its competitive position in the market.
- Ongoing Acquisition Push: Despite the unusual actions taken by Warner's board, Paramount is prepared to engage in constructive discussions while continuing to advance its tender offer, demonstrating its proactive stance and strategic intent in the media industry consolidation.
See More
CBS Restricts Colbert from Interviewing Talarico Due to FCC Pressure
- Network Controversy: CBS barred Colbert from interviewing Texas Rep. Talarico due to concerns over violating FCC's equal opportunity rules, highlighting media self-censorship under political pressure, which could impact content diversity and freedom.
- FCC Guidance Impact: The FCC recently reminded networks of the 1934 law requiring equal coverage for political candidates, leading to restrictions on Colbert's show, reflecting potential government interference in media content that may erode public trust in press freedom.
- Talarico's Response: Talarico shared a link to his interview with Colbert on social media, accusing the network of threatening free speech and labeling this as a form of “cancel culture” from the top, which could influence voter support for the Democratic Party.
- Industry Reaction: FCC Commissioner Gomez criticized CBS's decision as another example of corporate capitulation, urging broadcasters to resist political pressure and uphold press freedom, indicating the vulnerability of media in the face of government intervention, which may affect future news reporting.
See More
