Paramount Skydance Rallies on Winning WBD, Netflix Gives Up; What’s Next for PSKY?

Paramount Skydance PSKY +10.04% ▲ has finally won the long-standing bidding war to acquire all of Warner Bros. Discovery WBD -0.35% ▼ , with Netflix NFLX +2.29% ▲ giving up the fight to acquire only its streaming and studio assets. Yesterday, WBD’s board issued a statement noting that Paramount’s revised $31-per-share offer constitutes a “Company Superior Proposal” under WBD’s merger agreement with Netflix. Following the news, PSKY rallied over 10% in regular trading and jumped another 6% in after-hours trading.

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PSKY CEO David Ellison welcomed the decision, stating, “We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing.”

Details of Paramount Skydance’s Final Bid

Paramount’s deal includes $31 in cash per WBD share, valuing the entire company at roughly $110 billion. The offer also adds a $0.25‑per‑share ticking fee each quarter after September 30, 2026, which increases the effective price if the transaction closes later than expected.

Key protections include:

• Paramount pays a $7 billion termination fee if regulators block the deal, giving WBD shareholders additional downside protection.

• Paramount covers WBD’s $2.8 billion breakup fee to Netflix, removing a major financial overhang tied to the earlier Netflix agreement.

• Larry Ellison and his trust add more equity if needed to help satisfy bank solvency rules, ensuring financing remains secure under the terms of the transaction.

Will Paramount Face Regulatory Hurdles?

Paramount Skydance has already started clearing key regulatory hurdles in both the U.S. and Europe, giving the deal early momentum. In the U.S., the company has reportedly filed the required antitrust paperwork and begun discussions with regulators, which is a standard step for large media deals. It has already secured approval from Germany’s foreign investment authorities and will still need clearance from the European Union.

Strategically, the combination would unite Paramount Skydance, Paramount Pictures, and Warner Bros. Discovery’s film, TV, and streaming assets, creating one of the largest integrated entertainment and direct‑to‑consumer platforms in the industry. Closing of the deal is anticipated in late 2026 or early 2027, subject to approvals and WBD shareholder voting.

Is PSKY Stock a Buy?

On TipRanks, PSKY has a Strong Sell consensus rating based on zero Buys, four Holds, and four Sell ratings. The average Paramount Skydance price target of $12.17 implies 8.8% upside potential from current levels. Year-to-date, PSKY shares have lost 16.6%.

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