Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Paramount Skydance (NASDAQ:PSKY) stock jumped approximately 7% Friday following rumors of a potential Ellison-backed bid for Warner Bros. Discovery (NASDAQ:WBD). The stock, which has delivered an impressive 67.63% return year-to-date, is now trading near its 52-week high of $17.58, while maintaining an attractively low Price/Book ratio of 0.44.
The rumor also sent Warner Bros. Discovery shares up over 25% as investors reacted to the possibility of significant media consolidation. Benchmark maintained its Buy rating on Paramount Skydance with a $16.00 price target, while InvestingPro data shows analyst targets ranging from $8 to $20, reflecting mixed sentiment about the company’s prospects. InvestingPro subscribers can access 10+ additional exclusive insights about PSKY’s valuation and growth potential.
Benchmark noted it had previously addressed this potential combination in December 2023, estimating potential synergies of $3 billion. The firm indicated that Paramount could potentially pay around $18 per share for Warner Bros. Discovery while maintaining value neutrality or achieving marginal accretion.
The timing coincides with the FCC’s September preliminary agenda, which seeks to potentially eliminate the dual network rule, suggesting regulatory openness to further media consolidation among major players, though Department of Justice approval would still be required.
Benchmark’s analysis suggests a combination between the two companies could yield meaningful upside for the combined entity, though the structure of an all or almost all-cash bid and the actual takeout price could significantly alter financial projections.
In other recent news, Paramount Skydance has announced several key developments. The company has appointed Dane Glasgow, a former executive from Meta, as its Chief Product Officer. Glasgow will lead product vision and strategy across digital platforms and AI capabilities. Additionally, Paramount Skydance has reached an agreement with Activision to produce a live-action film based on the Call of Duty franchise, with CEO David Ellison emphasizing the project’s high standards.
In terms of stock analysis, BofA Securities has initiated coverage on Paramount Skydance with an Underperform rating, highlighting potential challenges despite the company’s global media ambitions. Morgan Stanley has also adjusted its price target for the company to $10, down from $12, while maintaining an Underweight rating. Meanwhile, the company has informed employees of a mandatory return to full-time office work starting January 2026, with buyout options available for those unwilling to comply. These developments reflect Paramount Skydance’s strategic and operational shifts as it navigates the evolving media landscape.
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