Warner Bros. Discovery Stock Falls On Doubts Over Friendly Paramount Tie-Up

This article first appeared on GuruFocus.

Sep 29 - Warner Bros. Discovery (NASDAQ:WBD) slipped 3% on Monday after fresh concerns emerged about a potential tie-up with Paramount Skydance (NASDAQ:PSKY). CNBC's David Faber noted that while Paramount is expected to put forward an offer, the transaction is unlikely to come together on friendly terms.

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According to Faber, Paramount may move ahead with a largely cash-based proposal, but negotiations with Warner Bros. Discovery's management could prove difficult. If talks fail, Paramount's board may need to take the proposal directly to shareholders. Previous reports suggested that Paramount Skydance could offer between $22 and $24 per share for WBD.

The renewed uncertainty comes just days after KeyBanc downgraded Warner Bros. Discovery, citing risks tied to ongoing merger speculation. Investors appear cautious as both companies weigh strategic options in a rapidly changing media landscape, where streaming growth and rising competition continue to pressure margins.

Market watchers will be closely following whether Paramount chooses to push forward with a formal bid despite resistance, as the outcome could reshape the future of both entertainment giants.

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