So the reports that suggest that Paramount Skydance (PSKY) is likely to end up suing entertainment giant Warner Bros. Discovery (WBD) over this whole acquisition kerfuffle are likely to carry on into next year. New reports suggest that Warner will turn down Paramount’s hostile offer, even with Larry Ellison’s personal backing. The news did not sit well with investors, as they sent shares down fractionally in the closing minutes of 2025’s trading.
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Reports note that Warner’s board still regards the $83 billion deal from Netflix (NFLX) as a superior offer, despite the fact that it is fully $25 billion less than what Paramount is offering. While it is important to note that Warner has not made a final decision yet, the news certainly does not bode well for Paramount’s chances right now.
Paramount seems to be willing to change regardless; if Warner were willing to show “goodwill,” reports noted, Paramount was actually prepared to up its price again. And Paramount is also taking its case directly to the shareholders as well, giving shareholders until January 21 to sell direct to Paramount. Though given the previous deadline of January 8, that represents a significant extension. Paramount certainly seems interested in giving shareholders every opportunity to sell out.
Distribution Deal
Warner also managed to secure a little more value for its eventual buyer too, setting up a new multi-year distribution deal with Canal+. The deal has wide-ranging effects, bringing HBO Max to Belgium and Austria, as well as offering 12 different Warner channels throughout Africa.
Warner has been avidly pursuing international expansion for its HBO Max platform, and now can be found in over 100 different markets worldwide. More expansions are planned for 2026, including into Ireland, Italy and Germany, as well as in the United Kingdom. Warner hopes to count over 150 million subscribers to its roster before 2026 ends, which will likely be before it is sold either way.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on eight Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 171.48% rally in its share price over the past year, the average WBD price target of $24.20 per share implies 16.1% downside risk.
