Warner Bros Discovery (NASDAQ:WBD) saw its stock decline 8% as investors reacted to merger uncertainties and a recent analyst downgrade.
CNBC’s David Faber reported that there “may be a bit of a longer wait” for Paramount Skydance to submit a bid for Warner Bros than initially expected, tempering investor optimism that had previously fueled gains amid merger speculation.
Adding to the pressure, Senator Elizabeth Warren voiced opposition to the potential deal on social media platform X, stating it “would be a dangerous concentration of power over our media and news” and calling for regulatory intervention. This came just days after WBD shares climbed on reports that Paramount Skydance Corp (NASDAQ:PSKY) was preparing a predominantly cash-based offer.
Analyst sentiment also weighed on the stock. TD Cowen’s Doug Creutz downgraded Warner Bros Discovery from Buy to Hold, assigning a $14.00 price target. Creutz highlighted concerns about the risk-reward balance, noting that while PSKY’s bid could exceed $20 per share, WBD shares might quickly revert to the $11-$12 range if a deal does not materialize.
Warner Brothers Discovery stock price
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