This article first appeared on GuruFocus.
Sep 12 – Warner Bros. Discovery (NASDAQ:WBD) shares surged about 29% Thursday and 10% on early Friday trading after reports that Paramount Skydance (NASDAQ:PSKY) is preparing a majority-cash offer for the media company, according to a Thursday report.
The proposed bid would target WBD’s entire business, the film studio, streaming services and cable networks, and would be backed by the Ellison family, people familiar with the matter told the Wall Street Journal.
Paramount Skydance, which recently completed its merger with Paramount, climbed in early trading. Netflix (NFLX) fell about 4% and other streaming peers eased as traders weighed the prospect of a bigger consolidation wave that could draw interest from Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).
No formal offer has been filed and plans could still falter, Reuters and other outlets added. Analysts warned the scale of a deal would create complex financing needs and invite antitrust scrutiny, while WBD’s planned split of streaming and linear operations could shape any approach.
The moves pushed options volume sharply higher and marked one of WBD’s strongest trading days in years. Deal details and timelines remain unclear.
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