Paramount Skydance (PSKY) Stock Falls on Netflix-Warner Bros. All-Cash Deal

Shares of Paramount Skydance (PSKY) fell after rival Netflix (NFLX) announced an all-cash deal to acquire Warner Bros. Discovery's (WBD) studios and streaming assets. The streaming giant kept its $82.7 billion offer unchanged, undermining PSKY's claims of a "superior all-cash bid."Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Netflix has had the full support of WBD's board since the start of the bidding war, having rejected multiple Paramount Skydance offers. NFLX stock rose on the news, while WBD shares dipped marginally. Will Ellison Raise His Bid? It remains to be seen how Paramount Skydance CEO David Ellison will react to the updated bid. Will he increase the company's $30 per share offer to acquire all of Warner Bros., including its news channels, or stick to the current terms? In any case, Netflix believes it has sidelined the competition, with PSKY's tender offer set to expire tomorrow, February 21. Netflix Goes All-In on WBD Netflix and WBD have updated their deal to simplify terms and provide clear value to WBD stockholders. The agreement remains all-cash at $27.75 per WBD share, funded by Netflix's cash reserves, credit facilities, and new loans. Stockholders will also receive additional Discovery Global shares following the split. WBD stockholders can vote by April 2026. The boards of both companies have fully approved the revised deal, which is expected to close after the Discovery Global split and regulatory approvals. Warner Bros. and Discovery Global will become separate public companies in 6 to 9 months, ahead of the Netflix merger completion. Is Paramount Skydance Stock a Good Buy? Analysts remain cautious on Paramount Skydance's long-term outlook. On TipRanks, PSKY stock has a Moderate Sell consensus rating based on one Buy, seven Holds, and seven Sell ratings. The average Paramount Skydance price target of $14.08 implies 19.3% upside potential from current levels. Over the past year, PSKY shares have surged nearly 15%.