Key Stats for Warner Bros. Discovery Stock
- Price Change for $WBD stock: 4%
- $WBD Share Price as of Nov. 14: $23
- 52-Week High: $23
- $WBD Stock Price Target: $22.5
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What Happened?
Warner Bros. Discovery (WBD) stock rose by over 4% on Friday following reports that Comcast has retained Goldman Sachs and Morgan Stanley as financial advisors and gained access to Warner Bros. Discovery’s data room as it evaluates a potential bid for its studio and streaming businesses.
Multiple suitors are seriously pursuing the media giant, following CEO David Zaslav’s announcement of the Board’s evaluation of strategic alternatives.
Comcast joins a crowded field of potential bidders, including Paramount and Skydance, which have made three unsolicited offers to acquire the entire company, and Netflix, which has hired Moelis & Co. to evaluate a prospective offer for the studio and streaming assets.
The battle for Warner Bros. Discovery is officially underway, with some of the biggest names in media and technology circling the treasure trove of IP, HBO, and the abundant cash flow from cable TV.
During its third-quarter earnings call, Warner Bros. Discovery declined to answer questions about a possible sale, but CEO Zaslav touted the strength of its film and television studios.
He predicted HBO Max would reach 150 million subscribers by the end of 2026 and emphasized the company’s position as the number one studio globally.
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What the Market Is Telling Us About WBD Stock
The move in WBD stock reflects growing conviction that a transaction is imminent, though the structure and buyer remain uncertain.
Hollywood Reporter picks Paramount Skydance as the favourite (with odds of 2-to-1) to win the acquisition race, given CEO David Ellison’s aggressive pursuit and the Ellison family relationship with President Trump, which could ease regulatory hurdles.
Comcast’s odds are lower at 5-to-1 despite Trump’s personal animosity toward CEO Brian Roberts. President Mike Cavanagh told investors that the company is evaluating media assets “complementary to our existing business”.
Netflix comes in at 10-to-1 odds even as co-CEO Ted Sarandos has said they don’t want to own linear TV networks. WBD’s studios and their IP trove, however, could be a different story.
The odds for private equity firms like Apollo and Blackstone stand at 12-to-1. Warner Bros. Discovery’s cable assets generate steady cash flow, exactly the business profile that excites PE executives.
The studios and streaming business offer a unique opportunity to own HBO’s top-tier brand and IP, whose value continues to rise.
WBD stock could benefit most from a scenario where private equity teams up with a media company to split the assets, or where two companies make a joint bid and carve up what they want. This structure could address regulatory concerns while maximizing value.
Warner Bros. Discovery’s Q3 results showed the strength of the underlying business that’s attracting all this attention.
The company is leading the 2025 box office in domestic and international markets as it is the only film studio to surpass $4 billion in box office revenue this year.
The Studios segment is on track to meaningfully exceed $2.4 billion in EBITDA for the year, making strong progress toward the $3 billion target.
The Streaming segment is expected to contribute more than $1.3 billion in EBITDA this year, compared to a loss of $2.5 billion three years ago.
HBO Max is now available in more than 100 countries, with launches in Germany, Italy, the U.K., and Ireland scheduled for 2026. The company added 3.5 million subscribers last quarter, with 3.3 million coming from international markets.
The transformation Zaslav has led over the past 3.5 years is remarkable, given that Warner Bros. Discovery has paid down $20 billion in debt and now sits at 3.3x net leverage.
The company successfully rebuilt the Motion Picture business from last place to industry leader, scaled HBO Max globally from a subscale U.S.-only service, and dramatically improved the creative culture.
The announced separation plan would create two strong, well-capitalized businesses. Warner Bros. Studios & Streaming would combine the world’s largest motion picture and TV library with HBO’s premium content and 150 million global streaming subscribers.
Discovery Global Networks would hold diversified assets, including TNT, TBS, CNN, Discovery, TLC, HGTG, Food Network, and free-to-air channels in Europe—businesses that remain powerful cash flow contributors.
Warner Bros. Discovery had initially planned to retain up to a 20% stake in the Studios & Streaming business, with Discovery Global eventually monetizing that stake.
CFO Gunnar Wiedenfels, who will become CEO of Discovery Global, has indicated that serious parties are already inquiring about acquiring that stake before the separation.
For WBD stock, the question now is whether bidders pursue the whole company, just Studios & Streaming, or some combination.
Paramount Skydance offers targeted solutions for the entire enterprise. Netflix and Comcast appear to be focused on their studios and streaming assets, while private equity could pursue the cash-generating Networks business.
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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!
