Warner Bros. Discovery (WBD) stock continues its dramatic surge, climbing another 3% to $29.12 on Wednesday after jumping 3.8% in the previous session. The stock has now surged 167% in 2025 on excitement about a potential takeover deal, putting it on pace for its best year on record.
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The fight for the HBO Max owner is still playing out, but Paramount Skydance (PSKY) appears to be gaining momentum. Paramount went directly to investors on Monday by making a $30-per-share tender offer for all of Warner Bros. Discovery. This move gives Paramount an advantage over Netflix’s (NFLX) cash and stock bid, which is valued at $27.75 a share and covers only Warner’s studios and streaming businesses.
Cash Certainty Tips the Scales
Although the total value offered by both bidders is similar, the certainty of Paramount’s all-cash bid appears to be winning over shareholders. Morningstar analyst Matthew Dolgin wrote that “the certainty of $30 in cash plus the respective odds of merger approval could tip shareholders toward Paramount”. Dolgin believes that Paramount now “has at least a 50/50 chance of acquiring all of Warner”.
The early signs suggest major shareholders are indeed backing Paramount. Famed media investor Mario Gabelli said on Tuesday that it was “highly likely” that he would tender his clients’ Warner Bros. Discovery shares to Paramount. Warner shareholders have until January 8 2026 to decide whether to accept the tender offer.
The key takeaway from this story is that Paramount’s $30 all-cash tender offer is proving more attractive than Netflix’s mixed bid, pushing Warner stock higher.
Investors can compare Warner Bros., Netflix, and Paramount stocks side-by-side on the TipRanks Stocks Comparison Tool. Click on the image below to find out more.
