Warner Bros. Discovery’s stock surged sharply after reports that Paramount Skydance is preparing an all-cash offer to acquire the media company in a deal potentially worth more than $50 billion. The bid is not yet official, but insiders suggest it could be announced as soon as next week.
The potential takeover follows Warner Bros. Discovery’s announcement that it plans to split its studio and streaming operations from its global television networks by April next year.
Warner Bros. would retain HBO, the film studio, and streaming assets, while Discovery Global would control TNT, CNN, and other cable channels. Any buyer would need to acquire the entire company before the separation is completed.
Shares of Warner Bros. Discovery jumped more than 28% on Thursday to $16.15, marking the largest single-day gain in its history.
On Friday, the stock continued to rise, closing at $18.87 after reports that CEO David Zaslav met with bankers to explore potential offers from other major players, including Amazon, Apple, and Netflix. Analysts suggest Zaslav may be aiming to spark a competitive bidding process.
The possible merger would unite two major film studios and their streaming platforms, Max and Paramount+, while consolidating valuable sports rights and iconic franchises such as Harry Potter, DC Comics, The Lord of the Rings, Star Trek, and Top Gun.
Industry experts note that the deal would increase scale for competing against Netflix, Disney, and Comcast. Although antitrust regulators are expected to review the deal, the current political climate may allow for a smoother approval process.
Warner Bros. Discovery investors are closely watching developments, with CEO Zaslav reportedly aiming for a potential share price of $40 if multiple bidders emerge.
On Wall Street, the stock currently carries a Moderate Buy rating, though the average price target of $14.65 suggests a potential downside from its recent gains.
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