WBD Hits Post-Deal Low as Merger Delay Pushes Odds to 50%
WBD has more than doubled off its 52-week low of $10.76.
Summary
Warner Bros. Discovery stock fell to $25.28, its lowest since the Paramount deal was announced, now trading 18% below the $31 cash offer. The decline follows Paramount's Friday disclosure that the merger is delayed until June 2027 or a federal antitrust ruling, surprising arbs who expected a smooth close. Barron's estimates implied deal odds at just over 50%, factoring a standalone value around $18 per share. Seaport Research downgraded the stock to Neutral, citing better capital deployment elsewhere. CEO David Ellison's internal email reaffirmed confidence, but the market is pricing significant uncertainty. The $7 billion breakup fee provides some floor, but weak box office and sector-wide pressure add risk. Watch for developments in the state AG lawsuit and any regulatory concessions.
At the time of this announcement, WBD was trading at $25.32 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $63.4B. The 52-week trading range was $10.76 to $30.00. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.