Key Points
Netflix (NASDAQ: NFLX) proposed an acquisition of Warner Bros. Discovery (NASDAQ: WBD) for nearly $83 billion, including roughly $11 billion in debt. This deal, aimed at acquiring Warner Bros.’ film and television studios, valued shares at $27.75, while competitor Paramount Skydance attempted an all-cash tender offer of $30 per share for the entire company. Warner Bros. Stock has surged to approximately $28.40 amid these developments.
As of the past six months, Netflix’s stock has dropped about 30%, raising concerns about the acquisition’s impact on the company’s financial health. Currently, 26 out of 38 analysts rated Netflix a buy, with a projected upside of nearly 40%, while Warner Bros. received mixed reviews with an average price target suggesting a 10% downside. Recent analyst actions include Guggenheim lowering Warner Bros.’ rating to neutral with a price target of $30.
