Deutsche Bank downgraded Warner Bros. Discovery (WBD) to Hold from Buy with a price target of $31, up from $29.50. The firm cites limited upside potential for the downgrade after Warner determined Paramount Skydance’s (PSKY) $31 per share offer for all of the company represents a superior proposal. Deutsche thought Netflix’s (NFLX) Co-CEO, Ted Sarandos, reportedly visiting the White House to discuss the proposed transaction was an indication that Netflix was willing to raise its offer for Warner. The firm views the combined Paramount-Warner as a “formidable competitor” to Netflix.
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