Overview

• Warner Bros. Discovery shares jumped about 50% since Thursday after a Wall Street Journal report said Paramount Skydance could acquire the company.
• Paramount Skydance Corp., the new name for Paramount Global, also surged following the report.
• On-air, Jim Cramer called WBD’s debt load horrendous and described the stock as a long-time short, while musing that deep-pocketed buyers like Amazon or Apple could theoretically pay it down.
• Cramer referenced Larry Ellison in the takeover chatter and responded to a report that someone bought roughly 100,000 WBD call contracts by joking the buyer might go to jail.
• There has been no deal announcement or disclosure of any investigation, though the outsized options trade could attract scrutiny.