Warner Bros. Discovery Inc. (WBD) saw its stock rise over 20% following Paramount Global's (PARA) formal offer to acquire the company for $45 billion in an all-stock transaction. The move marks a pivotal moment in the evolving media consolidation landscape.
- Paramount Global (PARA) made a $45 billion all-stock bid to acquire Warner Bros. Discovery (WBD)
- WBD stock rose over 20% on the announcement, valuing the company at $27 per share
- The offer represents a 30% premium to WBD’s prior closing price and includes assumption of $23 billion in net debt
- Potential annual cost synergies estimated between $1.2 billion and $1.8 billion
- Deal subject to shareholder and regulatory approval, with a target decision in Q2 2026
- Combined entity would be among the largest media conglomerates in the U.S.
Warner Bros. Discovery (WBD) experienced a sharp rally in its share price, jumping more than 20% in early trading after Paramount Global (PARA) unveiled a $45 billion all-stock acquisition proposal. The bid, which values WBD at approximately $27 per share, reflects a 30% premium to its closing price on the prior trading day, signaling strong investor confidence in the strategic rationale behind the deal. The transaction, if completed, would create one of the largest entertainment conglomerates in the United States, combining Paramount’s film and television franchises with WBD’s streaming assets, including HBO Max and Discovery+. The offer comes amid increasing pressure on legacy media companies to consolidate and scale in response to rising content costs and intensifying competition from tech giants and streaming platforms. The $45 billion valuation underscores Paramount’s ambition to expand its global footprint and accelerate its transition to a direct-to-consumer model. The proposed deal includes the assumption of WBD’s net debt, which stood at approximately $23 billion as of the latest fiscal quarter. Analysts suggest the merger could unlock significant cost synergies—estimated between $1.2 billion and $1.8 billion annually—through operational integration, workforce streamlining, and shared infrastructure across content production and distribution. Additionally, the combined entity would command a formidable portfolio of intellectual property, including franchises such as DC Comics, SpongeBob SquarePants, and the Star Trek universe. Market reaction has been swift and positive, with WBD’s stock reaching its highest level since mid-2023. The bid has also prompted speculation about potential counteroffers or regulatory scrutiny, as the merger could raise antitrust concerns given the combined market share in premium content and streaming. Investors in both WBD and PARA have closely monitored developments, with trading volumes on both stocks surging above 50% of their 30-day averages. The transaction remains subject to regulatory approval and the approval of WBD shareholders, with a final decision expected by early Q2 2026.