Warner Bros. Discovery Takeover: Will Paramount Skydance Bid Above $30 Per Share?
A key issue in the ongoing Warner Bros. Discovery (WBD) takeover battle is whether Paramount Skydance is prepared to raise its offer beyond $30 per share, according to a new research note from MoffettNathanson.
Analyst Robert Fishman described this as the “biggest ongoing question” in the WBD deal process, especially after Warner Bros. Discovery secured a seven-day waiver from Netflix to negotiate with Paramount Skydance.
Paramount Skydance May Raise Its Offer
According to MoffettNathanson, WBD has indicated that Paramount Skydance signaled a willingness to increase its bid to $31 per share, though that figure was not described as its final offer.
Fishman expects Paramount Skydance could go as high as $32 per share in order to pressure Netflix to match or exceed the proposal.
However, if Paramount Skydance aims to end the bidding war quickly, the firm suggests that an offer closer to $34 per share could eliminate debate over Discovery Global’s valuation and bring negotiations to a close.
Netflix Faces Pricing Discipline Question
As the potential bid rises, the financial rationale for Netflix becomes less attractive. MoffettNathanson’s base-case analysis suggests that a price above $30 per share would not be accretive for Netflix.
That said, the firm cautioned that media mergers and acquisitions rarely unfold exactly as expected.
The key question now is whether Netflix will remain disciplined and walk away if Paramount Skydance significantly increases its offer.
What It Means for Investors
MoffettNathanson noted that Netflix shareholders could benefit regardless of the final outcome.
If Netflix completes a deal, the long-term value of Warner Bros. Discovery’s assets may not yet be fully reflected in the stock price. On the other hand, if Netflix chooses not to proceed, its core drivers — including subscriber growth, advertising revenue expansion, and pricing power — could help rebuild investor confidence.
The firm reiterated its Buy ratings on both Netflix and Warner Bros. Discovery.
