Warner Bros. Discovery Rejects Paramount's Bid, Prefers Netflix's $83 Billion Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
Source: NASDAQ.COM
- Bid Rejection: Warner Bros. Discovery is set to reject Paramount's unsolicited tender offer, as the revised terms, including Larry Ellison's personal guarantee and increased regulatory termination fee, fail to enhance the per-share value, leading to skepticism from the board.
- Competitive Analysis: Despite Paramount's higher headline figure, Warner Bros. favors Netflix's nearly $83 billion deal, citing greater financing transparency and fewer regulatory hurdles, with a $2.8 billion breakup fee if they withdraw from the Netflix agreement.
- Shareholder Concerns: Major shareholders, including Harris Oakmark, have expressed doubts about Paramount's revised offer, deeming it insufficient compared to Netflix's proposal, indicating a lack of confidence in Paramount's bid credibility.
- Industry Dynamics: In Hollywood's largest consolidation battle, Warner Bros.' board continues to recommend shareholders support the Netflix merger agreement, suggesting that unless Paramount significantly improves its terms, Warner Bros. is unlikely to shift its stance.
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: 28.360
Low
14.75
Averages
24.98
High
30.00
Current: 28.360
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 Streaming, Studios and Global Linear Networks. The streaming segment primarily consists of its premium pay-television and streaming services. The 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 third parties and its networks/streaming services, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. The Global Linear Networks segment primarily consists of its domestic and international television networks.
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.
