TLDRs;
- WBD board maintains Netflix deal despite Paramount’s $30 per share bid.
- Larry Ellison’s $40.4 billion guarantee strengthens Paramount’s cash offer credibility.
- Stock trades near $29, reflecting deal uncertainty and procedural anticipation.
- Investors watch filings, financing updates, and political commentary for market signals.
Warner Bros. Discovery, Inc. (NASDAQ: WBD), the media giant behind HBO, Max, CNN, and the DC universe, saw its stock rise sharply in Monday’s trading as investors reacted to renewed developments in its ongoing acquisition drama.
WBD closed at $28.75, marking a 3.53% gain, and in after-hours trading, shares hovered just below $29, reflecting cautious optimism amid the complex bidding landscape.
The spotlight remains on WBD as the company balances two competing offers: Paramount Skydance’s $30 per share cash proposal, backed by a personal $40.4 billion guarantee from Oracle co-founder Larry Ellison, and a Netflix deal valued around $27.75 per share in combined cash and stock.
Warner Bros. Discovery, Inc., WBD
Paramount Amends Offer, Board Stays Firm
After U.S. markets closed, WBD confirmed receipt of Paramount’s amended, unsolicited tender offer. The board reiterated that it would review the proposal in line with fiduciary duties but is not altering its recommendation supporting the Netflix transaction. Shareholders were advised to refrain from taking action while the review is ongoing.
The company also disclosed its financial and legal advisors for the review, including Allen & Company, J.P. Morgan, Evercore, Wachtell Lipton, and Debevoise & Plimpton. Analysts say this sets the stage for a “process-focused” trading session Tuesday, where SEC filings, board statements, and procedural updates are likely to guide market behavior more than immediate deal decisions.
Ellison Guarantee Strengthens Paramount Bid
The most significant development Monday was Larry Ellison’s personal guarantee to underwrite Paramount’s cash offer. The $40.4 billion commitment aims to reassure WBD and the market about the bid’s financial reliability, addressing earlier concerns that had favored Netflix’s competing deal. Notably, the headline offer price of $30 per share remains unchanged, signaling that the amendment is more about funding certainty than an increased premium.
Investors and traders are weighing the implications: while the Ellison guarantee adds legitimacy to Paramount’s bid, the WBD board’s continued support for Netflix keeps the market divided. This dynamic explains the after-hours trading range around $28.78–$28.80, reflecting a blend of deal optimism and procedural uncertainty.
Market Weighs Netflix vs. Paramount
WBD’s market pricing illustrates the tug-of-war between two outcomes. Paramount’s all-cash $30 offer sits above Netflix’s package, which combines $23.25 cash with roughly $4.50 in Netflix stock. Investors appear to be balancing the potential upside of Paramount’s cash bid with the board-endorsed Netflix transaction, which focuses on the studios and streaming units rather than the full company.
Both bidders are actively addressing financing concerns. Netflix recently refinanced a portion of its $59 billion bridge loan to fund the acquisition, while Paramount’s Ellison guarantee matches breakup-fee structures, giving the market confidence that either deal could close if conditions are met. Analysts caution, however, that the ultimate resolution could extend well into 2026, making WBD a classic headline-driven stock rather than a fundamentals play.
Key Considerations for Investors
Investors heading into Tuesday should focus on procedural developments: new SEC filings, board communications, or updates from the bidders could significantly move the stock. Trading above Netflix’s implied package value but below Paramount’s offer signals that the market sees a possible, but not guaranteed, higher outcome.
Regulatory and political factors add another layer of volatility. Recent comments from former President Donald Trump regarding the Netflix-WBD combination underscore how non-financial headlines can impact pre-market sentiment. With the board holding firm on Netflix and Paramount’s bid backed by Ellison, WBD remains anchored between these two reference points, making near-term price action highly responsive to incremental news rather than quarterly earnings.
Bottom Line
WBD is in the eye of a multi-billion-dollar bidding storm. The Netflix-backed deal remains the board’s current recommendation, but Paramount’s Ellison-guaranteed offer keeps the market guessing. Traders should watch procedural updates, financing developments, and political commentary closely, as these factors will shape WBD’s trading trajectory in the coming sessions.
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