Warner Bros. Discovery downgraded to Hold from Buy at Benchmark

Benchmark downgraded Warner Bros. Discovery (WBD) to Hold from Buy and removed the firm’s prior price target following yesterday’s board acceptance of Paramount Skydance’s (PSKY) $31 bid. After adjusting for yesterday’s earnings results, the firm estimates a takeout sum-of-the-parts value near $33 and public market value at $30 and while it says that under antitrust law precedents the deal could be subject to considerable regulatory risk, Benchmark adds that “it now seems apparent the Trump Administration DOJ and FTC will readily approve the merger given Trump’s affinity for the Ellison family and the President’s antipathy toward CNN.”