Global Streaming Expansion And Iconic Content Will Unlock Future Potential

Warner Bros. Discovery’s analyst price target rose from $14.90 to $15.10, reflecting stronger studio results, potential M&A catalysts, an improving balance sheet, and sustained direct-to-consumer growth, though tempered by ongoing industry headwinds and acquisition uncertainty.

Analyst Commentary

• Bullish analysts cite stronger-than-expected performance in the studios segment, with significant upside in Q2 results and major year-over-year EBITDA growth driven by strong box office performance and continued TV momentum.
• Anticipation of potential M&A activity, particularly a possible acquisition bid from Paramount Skydance, is viewed as a major value driver; however, analysts note the risk of shares giving back gains if no deal materializes.
• Improved leverage profile and balance sheet strength are expected following a recent tender offer, with reduced net leverage and further value unlocked through possible divestiture/spin-off of assets like S&S from Global Networks.
• Ongoing industry headwinds persist in linear TV, with general entertainment weakness partially offset by sports advertising strength, and analysts expect continued revenue and EBITDA gains in studios and direct-to-consumer segments.
• Bearish analysts raise concerns over the stock’s valuation getting ahead of fundamentals, uncertainty around the Paramount deal, and the possibility of larger future eliminations impacting content revenue, which could pressure share price if strategic initiatives do not materialize.

What's in the News

• Paramount Skydance (PSKY) has not yet made a formal offer for Warner Bros. Discovery (WBD); concerns persist that CEO David Zaslav seeks a bidding war with potential suitors, and Skydance is evaluating the best approach, possibly involving major shareholder John Malone (New York Post, 9/24/25).
• CNBC reports Paramount Skydance is considering a $22-$24 per share mostly cash bid for WBD, backed in part by Larry Ellison, with the remainder as stock; 20-30% of the offer may be in PSKY shares (CNBC, 9/19/25).
• Zaslav is actively working to generate a bidding war for WBD, engaging Goldman Sachs to gauge interest from tech and media majors such as Amazon, Apple, and Netflix, aiming to push the stock price toward $40 per share (New York Post, 9/12/25).
• A Paramount Skydance–WBD merger would face significant regulatory, financial, operational, and investor hurdles, with concerns about job losses due to overlapping streaming services and the possibility of political interference (Bloomberg, 9/12/25).
• Disney, Universal, and Warner Bros. jointly filed a copyright lawsuit against China's MiniMax, claiming its Hailuo AI platform was built on stolen Hollywood IP, marking ongoing industry efforts to protect content (Reuters, 9/17/25).

Valuation Changes

Summary of Valuation Changes for Warner Bros. Discovery

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $14.90 to $15.10.
• The Discount Rate for Warner Bros. Discovery has fallen slightly from 11.45% to 11.20%.
• The Consensus Revenue Growth forecasts for Warner Bros. Discovery has fallen slightly from 0.6% per annum to 0.6% per annum.