Key Stats for PSKY Stock
- Price Change for PSKY stock: 9%
- $PSKY Share Price as of Dec. 8: $14.57
- 52-Week High: $20.86
- $PSKY Stock Price Target: $14.56
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What Happened?
Paramount Skydance (PSKY) stock jumped 9% on Monday after the company launched a hostile takeover bid for Warner Bros. Discovery, going directly to shareholders with a $30 per share all-cash offer.
This move came after Warner Bros. Discovery rejected Paramount’s proposal last week and chose Netflix’s competing bid instead.
Paramount is offering $108.4 billion for all of Warner Bros. Discovery, including its cable networks like CNN and TNT Sports. The bid is fully backed by the Ellison family and RedBird Capital, with $54 billion in debt commitments from Bank of America, Citi, and Apollo Global Management.
CEO David Ellison made his case clear on CNBC Monday morning, emphasizing that PSKY stock represents $17.6 billion more in cash than Netflix’s deal. “We’re sitting on Wall Street, where cash is still king,” Ellison said, arguing that Warner Bros. Discovery shareholders deserve to evaluate Paramount’s superior offer.
The financing includes Middle Eastern partners like Saudi Arabia’s Public Investment Fund and Qatar Investment Authority. However, these investors have agreed to forgo any governance rights or board seats to avoid CFIUS scrutiny.
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What the Market Is Telling Us About PSKY Stock
The 9% pop in PSKY stock signals that investors believe Paramount has a real shot at winning this bidding war.
The company is arguing it can offer faster regulatory approval than Netflix, which would create the world’s largest streaming service by combining Netflix’s 310 million subscribers with Warner Bros. Discovery’s 122 million HBO Max subscribers.
Ellison positioned Paramount as the pro-competition choice, calling Netflix’s deal “anticompetitive” and noting that even President Trump has expressed skepticism about the Netflix-Warner Bros. combination.
Netflix agreed to pay a $5.8 billion breakup fee if regulators block the deal, suggesting there’s genuine uncertainty about approval.
However, PSKY stock still trades 26% below its 52-week high, and Warner Bros. Discovery’s board has already chosen Netflix’s offer.
Paramount will need to convince shareholders directly that its all-cash bid is worth more than Netflix’s mix of cash, stock, and a spinoff of Warner Bros.’ cable networks.
The battle is far from over, but Monday’s move shows the market thinks Paramount is a serious contender.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
