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Warner Bros. Discovery, Inc. (WBD) stock experienced a dramatic surge on December 8, 2025, with shares jumping 6.28% to close at $26.08 and climbing an additional 5.75% to $27.58 in pre-market trading as of 9:14 AM EST. The catalyst for this remarkable rally was Paramount Skydance Corporation’s (PSKY) announcement of an all-cash tender offer to acquire all outstanding shares of WBD at $30.00 per share, representing a 139% premium over the undisturbed stock price of $12.54 from September 10, 2025.

This development comes just days after Netflix (NFLX) announced its own $72 billion deal to acquire Warner Bros. (excluding the Global Networks division), creating a competitive bidding situation that has Wall Street buzzing about shareholder value.

Paramount’s $30 Cash Bid Seeks to Outmatch Netflix’s $27.75 Offer

Paramount Skydance Corporation has positioned its tender offer as a “superior alternative” to the Netflix transaction announced just days earlier. Under Paramount’s proposal, WBD shareholders would receive $30.00 per share in cash for the entirety of the company, including the Global Networks division that Netflix’s deal would have separated.

This represents a total enterprise value of approximately $108.4 billion and provides shareholders with $18 billion more in cash compared to Netflix’s consideration structure.

The Paramount offer stands in stark contrast to Netflix’s mixed compensation structure, which valued WBD at $27.75 per share through a combination of $23.25 in cash and $4.50 in Netflix stock (subject to a collar mechanism). Paramount CEO David Ellison emphasized that WBD shareholders “deserve an opportunity to consider our superior all-cash offer” and criticized the Netflix deal for exposing shareholders to stock volatility and the uncertain future trading value of a separated Global Networks business.

The tender offer is scheduled to expire on January 8, 2026, unless extended, and is backed by fully committed financing from Bank of America, Citi, and Apollo, with equity backstopped by Paramount’s principal shareholders including the Ellison Family and RedBird Capital.

Paramount submitted six proposals to WBD’s Board of Directors over a 12-week period but claims the board never meaningfully engaged with these offers. The company argues its all-cash structure provides greater certainty and a quicker path to completion compared to Netflix’s transaction, which faces significant regulatory hurdles across multiple jurisdictions.

Industry observers note that Paramount’s decision to take its offer directly to shareholders reflects frustration with the board’s preference for the Netflix deal.

Netflix’s $72B Deal Faces Regulatory Roadblocks and Market Doubt

The Netflix transaction announced on December 5, 2025, valued Warner Bros. at $82.7 billion in enterprise value (equity value of $72.0 billion) and was structured to occur after WBD completed the previously announced separation of its Global Networks division, Discovery Global, into a standalone publicly-traded company.

Netflix’s deal would have united Warner Bros.’ iconic franchises including Harry Potter, Game of Thrones, The Wizard of Oz, and the DC Universe with Netflix’s streaming platform, creating what executives called “an extraordinary entertainment offering for audiences worldwide.”

However, the Netflix agreement faced immediate skepticism from Wall Street analysts who characterized it as a “lowest-probability outcome” due to anticipated regulatory challenges. The combination would have given Netflix approximately 43% of global subscription video-on-demand (SVOD) subscribers, raising significant antitrust concerns in multiple jurisdictions including the European Union.

President Donald Trump publicly stated the Netflix-WBD deal “could be a problem” and faces regulatory hurdles, adding political uncertainty to the transaction’s prospects.

WBD’s stock performance reflects the market’s enthusiasm for the competitive bidding situation. With a market capitalization of $64.63 billion as of December 5, 2025, and impressive year-to-date returns of 146.74%, the stock has dramatically outperformed the S&P 500’s 16.81% gain over the same period.

Analyst price targets range from $10.00 to $30.00, with the average target of $23.54 now appearing conservative given Paramount’s $30.00 offer. The 52-week range of $7.52 to $26.10 demonstrates the remarkable recovery and volatility in WBD shares, driven by strategic transaction speculation and improving business fundamentals.

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