Warner Bros. Discovery Reopens Talks with Paramount Skydance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy WBD?
Source: CNBC
- Negotiation Reopening: Warner Bros. Discovery (WBD) announced it will reopen negotiations with Paramount Skydance under a seven-day waiver from Netflix to address deficiencies in Paramount's acquisition proposal, a move that could significantly impact shareholder value maximization for WBD.
- Acquisition Offer: Paramount launched a hostile tender offer at $30 per share in cash, although its leadership has stated this is not its best and final offer; recent enhancements to the proposal have not included a per-share price increase, indicating ongoing acquisition interest in WBD.
- Potential Price Increase: Amid the reopening of talks, a senior Paramount representative informed a WBD board member that they would be willing to pay $31 per share if negotiations were to resume, which could influence WBD's decision-making process.
- Shareholder Meeting Announcement: WBD announced a special shareholder meeting scheduled for March 20, with the board continuing to unanimously recommend the Netflix deal, reflecting strong support for the existing transaction while also showing caution towards Paramount's proposal.
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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.
Market Dynamics and Investment Opportunities Analysis
- Tech Stock Pressure: Selling pressure in the Nasdaq is expected to exceed that of the S&P 500 due to ongoing fears of AI disruption, indicating a cautious market sentiment that may impact the short-term performance of tech companies.
- Norwegian Cruise Investment: Activist investor Elliott Investment Management has acquired over a 10% stake in Norwegian Cruise Line, aiming to turnaround the underperforming operator, which has led to a more than 6% increase in share price, reflecting market confidence in its restructuring potential.
- Energy Stock Upgrade: Melius upgraded Chevron from hold to buy, raising its price target from $162 to $205, as analysts believe the global energy company is well-positioned for growth, particularly due to developments in Venezuela.
- Apple Product Launch: Apple has invited press members to a
See More
Warner Bros. Rejects Paramount's Latest Offer, Seeks Higher Bid
- Deadline Set: Warner Bros. Discovery has given Paramount Skydance seven days to present their 'best and final offer,' indicating urgency in negotiations and a strong expectation for a higher bid.
- Offer Details Revealed: Warner Bros. stated that Paramount's latest offer stands at $31 per share, yet unresolved issues remain, prompting further discussions to clarify terms and potentially advance the deal.
- Regulatory Fee Impact: Paramount's latest proposal includes a 'ticking fee' of up to $650 million each quarter post-2026 if regulatory approvals are delayed, which could negatively affect the deal's attractiveness and investor confidence.
- Shareholder Meeting Scheduled: Warner Bros. has scheduled a special meeting for March 20 to vote on the transaction with Netflix, reflecting the company's strategic planning and timeline in the merger negotiations.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
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Warner Bros. Rejects Paramount's Takeover Bid
- Takeover Bid Rejected: Warner Bros. Discovery has rejected the hostile takeover bid from Paramount Skydance, giving the company until February 23 to submit its best and final offer, demonstrating Warner's firm stance on the existing merger agreement.
- Positive Stock Reaction: In pre-market trading on Tuesday, shares of Warner Bros. Discovery and Paramount both rose by 2.72%, while Netflix's stock increased by 0.70%, reflecting market optimism and attention towards the acquisition dynamics.
- Paramount's Price Strategy: Paramount's informal proposal of a $31 per share price has piqued the interest of Warner's board, although Warner's Chairman and CEO emphasized that this proposal is not deemed superior to the merger agreement with Netflix, showcasing Warner's commitment to the Netflix deal.
- Competitive Merger Agreement: Warner reiterated its merger agreement with Netflix, indicating that Netflix remains the primary competitor amid Paramount's acquisition attempts, and future merger dynamics could significantly impact the industry landscape.
See More
Warner Bros. Discovery Engages Paramount Amid Netflix Merger
- Paramount's Bid Intent: A senior Paramount representative indicated a willingness to pay $31 per share for Warner Bros., although Warner Bros. noted that this price was not reflected in the latest merger draft, highlighting negotiation uncertainties.
- Warner Bros. Stock Reaction: Following the latest updates, Warner Bros. stock traded over 2% higher in Tuesday's premarket, reflecting market optimism regarding its merger with Netflix, despite ongoing competition concerns with Paramount.
- Board's Support for Netflix Deal: Despite the reopening of talks with Paramount, Warner Bros. Discovery's board continues to unanimously support the Netflix transaction and urged shareholders to reject Paramount's tender offer, citing unresolved issues in the merger documents.
- Concerns Over Financing Risks: Warner Bros. expressed concerns about financing risks in a letter, emphasizing that Netflix's agreement offers stronger closing certainty and minimal financing exposure, while proposing that Paramount assume certain refinancing costs to mitigate risks.
See More
Warner Bros. Discovery Reopens Talks with Paramount Skydance
- Negotiation Reopening: Warner Bros. Discovery (WBD) announced it will reopen negotiations with Paramount Skydance under a seven-day waiver from Netflix to address deficiencies in Paramount's acquisition proposal, a move that could significantly impact shareholder value maximization for WBD.
- Acquisition Offer: Paramount launched a hostile tender offer at $30 per share in cash, although its leadership has stated this is not its best and final offer; recent enhancements to the proposal have not included a per-share price increase, indicating ongoing acquisition interest in WBD.
- Potential Price Increase: Amid the reopening of talks, a senior Paramount representative informed a WBD board member that they would be willing to pay $31 per share if negotiations were to resume, which could influence WBD's decision-making process.
- Shareholder Meeting Announcement: WBD announced a special shareholder meeting scheduled for March 20, with the board continuing to unanimously recommend the Netflix deal, reflecting strong support for the existing transaction while also showing caution towards Paramount's proposal.
See More
Market Dynamics and Investment Opportunities Analysis
- Tech Stock Pressure: Selling pressure in the Nasdaq is expected to exceed that of the S&P 500 due to ongoing fears of AI disruption, indicating a cautious market sentiment that may impact the short-term performance of tech companies.
- Norwegian Cruise Investment: Activist investor Elliott Investment Management has acquired over a 10% stake in Norwegian Cruise Line, aiming to turnaround the underperforming operator, which has led to a more than 6% increase in share price, reflecting market confidence in its restructuring potential.
- Energy Stock Upgrade: Melius upgraded Chevron from hold to buy, raising its price target from $162 to $205, as analysts believe the global energy company is well-positioned for growth, particularly due to developments in Venezuela.
- Apple Product Launch: Apple has invited press members to a
See More
Warner Bros. Rejects Paramount's Latest Offer, Seeks Higher Bid
- Deadline Set: Warner Bros. Discovery has given Paramount Skydance seven days to present their 'best and final offer,' indicating urgency in negotiations and a strong expectation for a higher bid.
- Offer Details Revealed: Warner Bros. stated that Paramount's latest offer stands at $31 per share, yet unresolved issues remain, prompting further discussions to clarify terms and potentially advance the deal.
- Regulatory Fee Impact: Paramount's latest proposal includes a 'ticking fee' of up to $650 million each quarter post-2026 if regulatory approvals are delayed, which could negatively affect the deal's attractiveness and investor confidence.
- Shareholder Meeting Scheduled: Warner Bros. has scheduled a special meeting for March 20 to vote on the transaction with Netflix, reflecting the company's strategic planning and timeline in the merger negotiations.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Warner Bros. Rejects Paramount's Takeover Bid
- Takeover Bid Rejected: Warner Bros. Discovery has rejected the hostile takeover bid from Paramount Skydance, giving the company until February 23 to submit its best and final offer, demonstrating Warner's firm stance on the existing merger agreement.
- Positive Stock Reaction: In pre-market trading on Tuesday, shares of Warner Bros. Discovery and Paramount both rose by 2.72%, while Netflix's stock increased by 0.70%, reflecting market optimism and attention towards the acquisition dynamics.
- Paramount's Price Strategy: Paramount's informal proposal of a $31 per share price has piqued the interest of Warner's board, although Warner's Chairman and CEO emphasized that this proposal is not deemed superior to the merger agreement with Netflix, showcasing Warner's commitment to the Netflix deal.
- Competitive Merger Agreement: Warner reiterated its merger agreement with Netflix, indicating that Netflix remains the primary competitor amid Paramount's acquisition attempts, and future merger dynamics could significantly impact the industry landscape.
See More
Warner Bros. Discovery Engages Paramount Amid Netflix Merger
- Paramount's Bid Intent: A senior Paramount representative indicated a willingness to pay $31 per share for Warner Bros., although Warner Bros. noted that this price was not reflected in the latest merger draft, highlighting negotiation uncertainties.
- Warner Bros. Stock Reaction: Following the latest updates, Warner Bros. stock traded over 2% higher in Tuesday's premarket, reflecting market optimism regarding its merger with Netflix, despite ongoing competition concerns with Paramount.
- Board's Support for Netflix Deal: Despite the reopening of talks with Paramount, Warner Bros. Discovery's board continues to unanimously support the Netflix transaction and urged shareholders to reject Paramount's tender offer, citing unresolved issues in the merger documents.
- Concerns Over Financing Risks: Warner Bros. expressed concerns about financing risks in a letter, emphasizing that Netflix's agreement offers stronger closing certainty and minimal financing exposure, while proposing that Paramount assume certain refinancing costs to mitigate risks.
See More
Warner Bros. Discovery Reopens Talks with Paramount Skydance
- Negotiation Reopening: Warner Bros. Discovery (WBD) announced it will reopen negotiations with Paramount Skydance under a seven-day waiver from Netflix to address deficiencies in Paramount's acquisition proposal, a move that could significantly impact shareholder value maximization for WBD.
- Acquisition Offer: Paramount launched a hostile tender offer at $30 per share in cash, although its leadership has stated this is not its best and final offer; recent enhancements to the proposal have not included a per-share price increase, indicating ongoing acquisition interest in WBD.
- Potential Price Increase: Amid the reopening of talks, a senior Paramount representative informed a WBD board member that they would be willing to pay $31 per share if negotiations were to resume, which could influence WBD's decision-making process.
- Shareholder Meeting Announcement: WBD announced a special shareholder meeting scheduled for March 20, with the board continuing to unanimously recommend the Netflix deal, reflecting strong support for the existing transaction while also showing caution towards Paramount's proposal.
See More
