CNBC Television
Warner Bros. Discovery targets Christmas deadline for announcing a sale or a split
11/5/2025, 8:13:31 PM
Economic Summary
- Paramount (with Skydance involvement) submitted an unsolicited $23.50-per-share offer to acquire Warner Bros. Discovery (WBD), positioning the bid as more shareholder-friendly than breakup alternatives.
- Warner Bros. Discovery's original merger combined HBO Max and the movie studio with Discovery's cable networks, but the combined company has not traded well and is now being reconsidered by management and the board.
- The board is weighing options including splitting into separate publicly traded companies (Discovery Global and Warner Bros.) or selling units, reflecting strategic repositioning after the merger's poor performance; this creates a takeover opportunity.
Bullish
- Paramount's unsolicited $23.50 per-share bid offers immediate cash value to Warner Bros. Discovery shareholders.
- A straight sale to Paramount (with Skydance backing) could be simpler and more shareholder-friendly than splitting WBD.
- A successful takeover could resolve strategic uncertainty around the failed Warner-Discovery merger.
Bearish
- Warner Bros. Discovery's post-merger business has underperformed and the combined company is widely seen as a failed merger.
- Historical big media mergers (AOL-Time Warner, AT&T-Time Warner) frequently destroyed shareholder value, implying takeover outcomes may be risky.
- Warner Bros. board could prefer splitting or asset sales, which might not maximize shareholder value versus a cash bid.
Bullish tickers
WBDPARASKYDANCE
Bearish tickers
WBDT
WBD
1 price targets
23.5
Bullish
Paramount's $23.50 unsolicited cash bid is presented as more shareholder-friendly than a breakup or asset sales.
Bearish
Post-merger underperformance and history of media mega-mergers destroying shareholder value suggest risks for WBD shareholders.
PARA
Bullish
Paramount (working with Skydance) is making a cash bid to acquire WBD, potentially creating strategic scale and immediate value.
Bearish
The unsolicited nature of the bid may face board resistance and integration/regulatory risks if pursued.
T
Bearish
Cited as an example of a large media deal (AT&T-Time Warner) that harmed shareholders, implying caution for similar transactions.
SKYDANCE
Bullish
Skydance's involvement supports Paramount's acquisition bid for WBD, signaling partnership backing for the offer.
People mentioned
Alex ShermanDavid EllisonDavid Zaslav