Warner Bros. Named Benchmark’s ’Best Idea’ Amid Paramount Skydance Bid Frenzy

Hollywood's dealmaking drama just hit blockbuster status—Warner Bros. snags Benchmark's coveted 'Best Idea' crown as Paramount's Skydance bid talk sends shockwaves through Tinseltown.

The Streaming Wars Get Real

Benchmark's analysts are betting big on Warner's content arsenal—calling it the standout play in a sector where everyone's scrambling for scale. No surprise when legacy media's playing musical chairs with billion-dollar valuations.

Paramount's Poker Face

Skydance's rumored move on Paramount has rivals recalculating their next play. Warner's suddenly looking like the smart money's pick—because in entertainment, sometimes the best strategy is watching your competitors overpay for assets.

Wall Street's latest 'best idea' feels suspiciously like yesterday's news—but hey, when the hedges are circling, someone's always buying the popcorn.

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After markets closed on Thursday, September 11, the Wall Street Journal reported that the recently merged Paramount Skydance is preparing an all-cash bid for Warner Bros. Discovery. Following the news, shares of both media companies rallied. WBD stock jumped 16.7% on Friday to a new 52-week high of $19.33, while PSKY gained 7.6% to reach an all-time high of $18.87.

Why Harrigan Is Bullish on WBD

Harrigan’s confidence in WBD stock strengthened after the news of a Paramount bid, led by CEO David Ellison. He believes the offer could spark competing interest from other media giants such as Sony (SONY), Netflix (NFLX), Apple (AAPL), and Amazon (AMZN). Nonetheless, Harrigan views Paramount as best suited to manage the decline of traditional TV networks while shifting towards streaming, boosted by its strong sports portfolio, including NFL rights.

On the regulatory front, Harrigan expects minimal regulatory resistance to the deal, citing the Ellison family’s political ties and the fact that CBS is the only broadcast network involved. Despite some Federal Communications Commission (FCC) concerns, the merger is expected to be approved because of the significant cost-saving opportunities between CNN and CBS News.

Harrigan’s Views on WBD’s Planned Split

Harrigan also weighed in on Warner Bros. Discovery’s planned separation into two publicly traded companies by the second quarter of 2026. He noted that if a takeover bid arises before then, tax implications tied to the split could create urgency for potential suitors.

The new Warner Bros. and Discovery Global stocks could rise as current prices do not reflect expected earnings growth. He added that Studio and HBO Max are growing, supported by more than $5 billion in cost cuts, while management is focused on managing linear TV decline and new growth.

Harrigan’s current price target of $18 is a conservative estimate based on forecasts through 2027 and does not yet include full earnings from Warner Bros. Studio and HBO Max. An alternative sum-of-the-parts public valuation is $20.

Is WBD Stock a Buy, Hold, or Sell?

Analysts remain divided on Warner Bros. Discovery’s long-term outlook. On TipRanks, WBD stock has a Moderate Buy consensus rating based on six Buys and seven Hold ratings. The average Warner Bros. Discovery price target of $14.17 implies 24.9% downside potential from current levels. Year-to-date, WBD stock has surged 78.5%.