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Investing.com - Warner Bros. Discovery (NASDAQ:WBD), currently trading at $16.77 and up over 62% year-to-date according to InvestingPro data, saw its stock rise after Raymond James reiterated an Outperform rating with a $22.00 price target following the company’s announcement of a strategic review.
On Tuesday morning, Warner Bros. Discovery, which generates annual revenue of $28.76 billion and maintains healthy liquidity with a current ratio of 1.39, announced its board had initiated a review of strategic alternatives to maximize shareholder value, prompted by unsolicited interest from multiple parties for both the entire company and its post-split Warner Bros. unit.
The company stated it is considering a transaction for the entire company or separate transactions for Warner Bros. and/or Discovery, with the potential for an alternative separation structure that would enable a merger of Warner Bros. and a spin-off of Discovery to shareholders.
This announcement comes amid ongoing public negotiations with Paramount Skydance, with Bloomberg recently reporting that Warner Bros. Discovery rejected a $20 bid for the entire company as too low. The strategic review appears to open the bidding process to all interested parties rather than waiting for the company’s planned split.
Warner Bros. Discovery continues its process of splitting into Warner Bros. (Streaming & Studios) and Discovery (Global Networks), with completion still expected by mid-2026, though the company had recently mentioned April as a target date without reiterating it in this announcement.
In other recent news, Warner Bros. Discovery is reportedly the target of a potential $60 billion bid led by Skydance Media’s David Ellison, with Apollo Global Management considering joining the acquisition effort. This development has sparked interest as Apollo already holds significant stakes in media entities like Cox Media Group and Legendary Entertainment. Meanwhile, Raymond James has raised its price target for Warner Bros. Discovery to $22, maintaining an Outperform rating, as speculation about the acquisition intensifies.
On a related note, Paramount Skydance has been active in expanding its media footprint. UBS adjusted its price target for Paramount Skydance to $12, despite maintaining a Sell rating due to concerns over heavy content investments. Paramount Skydance is also set to acquire the startup news outlet Free Press and has appointed its founder, Bari Weiss, as the editor-in-chief of CBS News. Additionally, Paramount has secured exclusive media rights for Zuffa Boxing, a deal that will see Paramount+ stream boxing events across the U.S., Canada, and Latin America starting in January 2026. These moves highlight Paramount Skydance’s strategic efforts to bolster its content offerings and media presence.
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