Shareholders of Paramount Skydance (PSKY) have watched the stock lose value amid its unsuccessful bid against Netflix (NFLX) to acquire Warner Bros. Discovery (WBD). Over the past three months, PSKY shares have declined steadily by 28.8%. Meanwhile, President Donald Trump has decided not to take sides in the bidding war. In an NBC Nightly News interview, he stated “I’ve been called by both sides… It’s the two sides, but I’ve decided I shouldn’t be involved. The Justice Department will handle it.”
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Trump’s remarks represent a sharp reversal from his December comments, when he indicated involvement in the review process and warned that a Netflix-Warner Bros. merger would be monopolistic and “could be a problem.”
Netflix has bid $72 billion for WBD’s film studios, HBO, and HBO Max streaming platform, but its bid excludes WBD’s cable networks and CNN. In contrast, Paramount has launched a hostile takeover bid for the entirety of WBD, with an enterprise value exceeding $108 billion.
WBD Bidding War Continues
After extensive deliberations, revised offers, and rejections, the WBD board has reaffirmed its commitment to Netflix’s deal. The transaction awaits approval from the U.S. Justice Department and European regulators. Paramount Skydance CEO David Ellison maintains close ties to the President through his father, Oracle billionaire Larry Ellison (ORCL). Netflix co-CEO Ted Sarandos reportedly visited Trump in the Oval Office to discuss the matter.
Sarandos also defended the proposed WBD acquisition during a two-hour Senate Subcommittee hearing on Antitrust, Competition Policy, and Consumer Rights. He aimed to ease concerns about reduced competition in streaming. WBD’s chief revenue and strategy officer, Bruce Campbell, also testified in support of the deal.
Is PSKY a Buy, Hold, or Sell?
Analysts remain cautious on Paramount Skydance’s long-term outlook. On TipRanks, PSKY stock has a Moderate Sell consensus rating based on one Buy, seven Holds, and seven Sell ratings. The average Paramount Skydance price target of $14.08 implies nearly 31% upside potential from current levels.
