NEW YORK (AP) — Warner Bros. is telling shareholders of the company that it believes a $72 billion buyout offer from Netflix is superior, and to reject a hostile takeover bid from Paramount Skydance. Paramount went hostile with its bid last week, asking shareholders to reject the deal with Netflix favored by the board of Warner Bros. Paramount is offering $30 per Warner share, or $77.9 billion, to Netflix’s $27.75 per share. A Warner Bros. merger with either company would alter the landscape in Hollywo ...

With a market cap of $70 billion, New York-based Warner Bros. Discovery, Inc. (WBD) is a global media and entertainment company formed through the merger of WarnerMedia and Discovery. Its portfolio includes prominent film and television studios, cable networks, and the Max streaming platform. The company operates across content creation, distribution, and direct-to-consumer streaming, leveraging franchises such as DC, HBO, Warner Bros. Pictures, Discovery, and CNN. Companies valued $10 billion or more ar ...

NEW YORK (AP) — Warner Bros. Discovery's friendly agreement to sell itself to Netflix just got upended by a hostile actor -- Paramount, which made Warner shareholders a higher offer and touched off what is likely to be a lengthy fight in the latest episode of media industry consolidation. The bid comes after Warner last week agreed to be bought by Netflix for $72 billion. The competing offers set the stage for combining some of the most beloved entertainment properties. Netflix’s vast library includes “S ...

Core Insights - Warner Bros. Discovery, Inc. (WBD) is valued at $50 billion and is a major player in the global media and entertainment sector, formed from the merger of WarnerMedia and Discovery in 2022 [1] Financial Performance - WBD is expected to report a Q3 loss of $0.05 per share, a significant decline of 200% from the profit of $0.05 per share in the same quarter last year [2] - For the full fiscal year 2025, analysts project an EPS of $0.36, representing a 107.8% improvement from the $4.62 loss per share in fiscal 2024 [3] Stock Performance - WBD's stock has increased by 172.6% over the past 52 weeks, outperforming the Communication Services Select Sector SPDR ETF Fund's 27.1% rise and the S&P 500 Index's 14.5% gain during the same period [4] Strategic Developments - On October 21, WBD shares surged over 10% following the announcement of a review of strategic alternatives, which may include a full company sale or divestiture of its studio and streaming business [5] - WBD's shares rose 4.6% on October 13 after rejecting a $20-per-share takeover offer from Paramount Skydance, indicating management's belief in the company's higher intrinsic value [6] - Citigroup raised its price target for WBD from $14 to $25 while maintaining a 'Buy' rating, citing stronger fundamentals and improved profitability in the streaming segment [6]

Core Viewpoint - Warner Bros. Discovery (WBD) is exploring a potential sale after receiving unsolicited interest from multiple buyers, indicating a shift in its strategic direction [2][4]. Company Restructuring - WBD plans to split into two publicly traded companies: one focusing on streaming and studio brands like HBO and Warner Bros. Pictures, and the other overseeing cable networks including CNN and Discovery [3]. - Despite the split, WBD is now reviewing "strategic alternatives" with no set timeline, suggesting a desire for acquisition rather than solely pursuing the split [4]. Acquisition Interest - Paramount Skydance Corporation made a lowball offer of approximately $20 per share, which WBD rejected [5]. - Other interested parties include Netflix and Comcast, indicating a competitive landscape for potential acquisition [8]. Market Reaction - Following the news of acquisition interest, WBD shares surged over 10% to a high of $20.58 [6]. - The company's stock has nearly doubled in value this year, reflecting increased market recognition of its asset value [9]. Financial Considerations - Estimates suggest that a bidding war for WBD could lead to a sale price exceeding $60 billion, despite the company carrying over $40 billion in debt from its 2022 merger [9].

Core Viewpoint - Paramount Skydance is preparing a significant bid for Warner Bros. Discovery, potentially valuing the company at up to $24 per share, with a proposed deal structure of 70% to 80% cash and the remainder in stock [1][3][4]. Group 1: Bid Details - The bid is expected to be in the range of $22 to $24 per share, significantly above Warner Bros. Discovery's current trading price of around $19 [1][4]. - The backing for the bid includes major cash support from Oracle co-founder Larry Ellison, who is the father of Paramount Skydance CEO David Ellison [1][9]. - Warner Bros. Discovery's stock saw a nearly 30% surge following the news of the planned bid, indicating strong market interest [5][11]. Group 2: Strategic Implications - Warner Bros. Discovery CEO David Zaslav is reportedly seeking a bidding war to increase the company's valuation, aiming for a price target of $40 per share [4][5]. - The company has been burdened with debt since its 2022 merger and is struggling to compete with major streaming services like Netflix [12]. - The potential merger would create a powerful entity in the media landscape, combining assets such as HBO, CNN, and Warner Bros. Pictures with Paramount's existing portfolio [10][11]. Group 3: Market Context - The bid reflects the increasing pressure on legacy media firms as traditional cable subscriptions decline and streaming growth slows [11]. - Warner Bros. Discovery is considering splitting its operations into two publicly traded entities if its valuation expectations are not met [5][10]. - The proposed merger would require approval from regulatory bodies, including the Federal Communications Commission and the Department of Justice, with anticipated antitrust scrutiny [14].

Core Insights - Warner Bros. Discovery, Inc. (WBD) has a market capitalization of $44.5 billion and operates in the media and entertainment sector with a diverse portfolio including television, film, streaming, and gaming [1] - The company is classified as a large-cap stock, valued at $10 billion or more, and reaches global audiences through various platforms [2] Financial Performance - WBD shares have experienced an 8.7% decline from their 52-week high of $19.59, but have surged 69.3% over the past three months, outperforming the S&P 500 Index's 10.8% gain during the same period [3] - Year-to-date, WBD stock is up 69.3%, surpassing the S&P 500's 12.6% increase, and has risen 112.5% over the past 52 weeks compared to the S&P 500's 17.9% return [4] Recent Developments - Despite reporting a surprise profit of $0.63 per share for Q2 2025, WBD shares fell 7.3% due to revenue of $9.81 billion falling short of expectations, alongside a 12% drop in advertising revenue from its linear network unit and a 9% decline in overall cable TV revenue [5] - The company added 3.4 million streaming subscribers and experienced strong studio growth of 55%, but concerns over increasing debt and management's warning of a further decline in TV ad revenue impacted investor sentiment [5] Competitive Landscape - In comparison, rival Live Nation Entertainment, Inc. (LYV) has seen a 30% increase year-to-date and a 63.8% rise over the past 52 weeks, indicating that WBD is outperforming its competitor in the stock market [6]