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Who will close Warner Bros. acquisition?
Paramount
74.0%Volume 1.21M
Paramount Skydance Corporation Class B Common Stock
PSKY · NASDAQ
Analyst ratings
sell · 10 ratings
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| May 5, 2026 | Wells Fargo | Maintains | Underweight | $7.00 |
| May 5, 2026 | Guggenheim | Maintains | Neutral | $12.00 |
| May 1, 2026 | Morgan Stanley | Upgrades | Overweight | $14.00 |
| April 2, 2026 | Wells Fargo | Maintains | Underweight | $8.00 |
| March 10, 2026 | B of A Securities | Maintains | Underperform | $11.00 |
| March 3, 2026 | Guggenheim | Maintains | Neutral | $14.00 |
| February 26, 2026 | TD Cowen | Maintains | Hold | $13.00 |
| December 9, 2025 | Morgan Stanley | Maintains | Underweight | $12.00 |
| November 12, 2025 | Bernstein | Maintains | Underperform | $12.00 |
| November 11, 2025 | Evercore ISI Group | Maintains | In-Line | $14.00 |
| November 11, 2025 | Wells Fargo | Maintains | Equal-Weight | $18.00 |
| November 11, 2025 | Benchmark | Maintains | Buy | $19.00 |
| November 11, 2025 | B of A Securities | Maintains | Underperform | $13.00 |
| November 4, 2025 | JP Morgan | Maintains | Underweight | $14.00 |
| October 23, 2025 | Wells Fargo | Maintains | Equal-Weight | $16.00 |
| October 8, 2025 | UBS | Maintains | Sell | $12.00 |
| August 27, 2025 | Morgan Stanley | Maintains | Underweight | $10.00 |
Prediction markets
Live event probabilities associated with this company or market.
Warner Bros. Discovery merger regulatory risk and deal completion
Bull case
The merger has already secured 24 antitrust and FDI clearances across multiple jurisdictions, demonstrating meaningful regulatory progress. InvestingPro notes the stock may be undervalued ahead of merger completion, and strategic equity commitments of nearly $24 billion from sovereign wealth funds, including Saudi Arabia's PIF, signal strong institutional confidence in the deal closing.
Bear case
A coalition of state attorneys general has filed suit to block the Paramount–WBD merger, introducing significant legal uncertainty. Arete downgraded PSKY to Sell with a $2 price target, citing ongoing US state and European regulatory pushback. The 14% merger spread reflects the market's skepticism that the deal will close without costly delays or concessions.
Post-merger debt burden and financial leverage sustainability
Bull case
Seven analysts have revised earnings upwards and the company is expected to return to profitability in the near term. Earnings are forecast to grow at 54.3% per annum, with EPS growth of 55.6% annually. Benchmark maintains a Buy rating with a $19 price target, reflecting confidence that the combined entity can service its debt load through operational cash flow growth.
Bear case
Wells Fargo flagged PSKY's high pro forma leverage as a key risk, cutting its price target and warning that the company must demonstrate post-deal execution to ease investor fears. A Seeking Alpha analyst maintained a 'hold' rating, noting that substantial post-merger debt and WBD's declining Global Linear Networks segment make downside risk significant if synergies fail to materialize.
Streaming synergy potential vs. structural decline of linear TV
Bull case
The combination of Paramount Skydance and Warner Bros. Discovery's streaming platforms is expected to unlock meaningful operational synergies. The merged entity's content library and subscriber base could create a formidable competitor to Netflix, with David Dietze of Schwab Network highlighting PSKY as a contrarian pick with compelling long-term upside in the evolving streaming landscape.
Bear case
WBD's Global Linear Networks segment is in structural decline, weighing heavily on consolidated revenue growth projections. PSKY's own revenue is forecast to grow at only 2.5% per year, far below the US market's 13% average, suggesting that streaming gains may not offset the accelerating erosion of traditional pay-TV revenues across the combined company.