Warner Bros Discovery Stalls at $27.99 as $108 Billion Paramount Bid Faces Delay

"Amid all of the ongoing conversation around Netflix and Paramount, Shares of Warner Bros. Discovery (NASDAQ:WBD) are trading at $27.99, hovering just below the $30 per share ceiling that Paramount's revised bid established. Despite a remarkable 174% gain over the past year, Warner Bros. Discovery finds itself stuck in neutral as two media giants duke it out for control. The stock has gone nowhere recently, down 2.9% year-to-date, as shareholders await clarity on whether Netflix's $72 billion deal or Paramount's aggressive $108.4 billion counteroffer will prevail."

"Reddit activity has exploded around the bidding war, with mentions on r/WallStreetBets spiking dramatically in recent weeks. The discussion turned sharply bullish last week when sentiment hit 75 after news broke that Warner Bros. was reconsidering Paramount's sweetened offer. A viral post about the revised bid, which covers the $2.8 billion Netflix breakup fee, received over 2,700 upvotes, signaling strong retail interest."

"Understandably, any optimism around the stock is driven by real concerns. Activist investor Ancora Holdings, which built a $200 million position in Warner Bros., has expressed skepticism about the Netflix deal's uncertain cash consideration and the unknown equity value of the Discovery Global spinoff. Meanwhile, the company's fundamentals remain shaky: Revenue has declined 5.1% annually over the past two years Free cash flow margins show no improvement projected for next year The company trades at 147x trailing earnings, reflecting minimal profitability"

Warner Bros. Discovery shares are trading at $27.99, just under the $30 ceiling established by Paramount's revised bid, after a 174% gain over the past year. The stock is effectively flat recently, down 2.9% year-to-date, while the outcome of competing offers from Netflix ($72 billion) and Paramount ($108.4 billion) remains uncertain. Retail interest has surged on r/WallStreetBets, with sentiment spiking and a viral post covering a $2.8 billion breakup fee. Activist Ancora Holdings is skeptical of Netflix's offer, and company fundamentals show declining revenue, stagnant free cash flow margins, and a 147x trailing earnings multiple.

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