Overview
- Netflix has proposed a cash‑and‑stock offer for Warner Bros. Discovery at $27.75 per share, valuing the assets at about $82.7 billion in enterprise value and conditioned on a networks spin‑off into Discovery Global targeted for 2026.
- Paramount Skydance is preparing a competing all‑cash proposal of $30 per share for WBD, creating a contested process with different financing profiles.
- Netflix shares are roughly 30% below 2025 highs following Q3 results and the acquisition news, reflecting heightened execution and regulatory risk.
- Sell‑side reaction includes Pivotal cutting to Hold with a $105 target, Huber lowering to Underweight with a $92 target, Rosenblatt moving to Neutral at $105, Wolfe trimming its target to $121 while keeping Outperform, and Jefferies reducing its target to $134 with a Buy.
- Regulatory and industry pushback is building, with guild concerns, reports of potential DOJ scrutiny focused on streaming competition, and Disney’s Bob Iger questioning the deal’s pricing power implications.