Paramount Skydance Stock Drops 8% as Netflix’s Warner Bros. Deal Reshapes Streaming Wars
Paramount Skydance Corporation shares fell sharply after Netflix upended the media M&A landscape with a $27.75-per-share acquisition of Warner Bros. Discovery's crown jewels. The streaming giant's surprise MOVE for HBO Max and Warner Bros. studio has left Paramount reassessing its $30-per-share all-cash counteroffer.
David Ellison's strategic vision for combining Paramount with Warner Bros. Discovery now faces stiff competition. The deal WOULD have created an entertainment titan with combined film studios and streaming platforms. Instead, Warner Bros. Discovery shares have doubled since September as multiple suitors entered the fray.
Netflix's play demonstrates the escalating value of premium content libraries in the streaming wars. With Warner Bros. Discovery CEO David Zaslav poised to net over $660 million from the transaction, the battle for media supremacy shows no signs of cooling.
