Warner Bros. Discovery stock surged more than 20% on Thursday following reports that Paramount Skydance Corp (NASDAQ:PSKY) is preparing a bid for the entertainment giant.
According to The Wall Street Journal, Paramount Skydance is working on an offer for all of Warner Bros. Discovery, with the majority of the planned bid expected to be in cash. The potential acquisition would be backed by David Ellison, the son of Larry Ellison, the billionaire founder of Oracle.
In June, Warner Bros. Discovery announced that it would separate into two publicly traded companies to maximize value. The new S&S company will unite Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with their iconic film and TV libraries. Global Networks will bring together leading entertainment, sports, and news brands worldwide, including CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, and digital platforms such as the profitable Discovery+ service and Bleacher Report.
Earlier today, analysts at Wells Fargo speculated the company’s Streaming & Studios (S&S) unit could be sold to one of several interesting potential buyers, including Amazon, Apple, Comcast, Paramount Skydance, Netflix, or Sony. They added that Netflix stands out as the most compelling buyer.
Source :
https://www.investing.com/news/stock-market-news/warner-bros-discovery-soars-on-rumored-paramount-skydance-bid-4235885
