With the Bidding War Finished, We Expect Paramount to Acquire Warner Bros. Discovery

Warner Bros. Discovery has agreed to be taken over by Paramount, and we expect the deal to secure regulatory approval and be completed. If the deal falls through, we think Netflix would reenter the fray and look to acquire Warner’s streaming and studios businesses, though at a materially lesser price than the $27.75 it previously offered. Either way, we think Warner is unlikely to stay completely independent. If it did, however, we think streaming and studios have a promising future, while global networks face perpetual decline.