Warner Bros. Reopens Talks With Rival Paramount
Watch on YouTube ↗  |  February 17, 2026 at 14:39 UTC  |  3:04  |  Bloomberg Markets
Speakers
News Anchors — Financial Reporters

Summary

  • Paramount (PARA) has re-entered negotiations with Warner Bros. Discovery (WBD), with bankers indicating a willingness to offer a minimum of $31 per share for the entire company.
  • A competing bid structure involves Netflix (NFLX) acquiring only the studios and streaming assets while spinning off legacy networks, whereas Paramount proposes acquiring the "whole enchilada."
  • Regulatory risk is a primary concern, with the Biden administration expressing specific skepticism regarding a Netflix acquisition of CNN, and the market implicitly valuing legacy cable assets near zero in the Paramount deal structure.
Trade Ideas
Ticker Direction Speaker Thesis Time
SHORT News Anchors
Financial Reporters
"Paramount had, to the market's mind, undervalued the legacy networks and... given them a set an essential valuation of of, near zero." If sophisticated industry insiders (Paramount bankers) are valuing traditional cable and network assets at zero during M&A due diligence, the broader market is likely overvaluing pure-play legacy media stocks that lack robust streaming growth. This serves as a bearish signal for the entire legacy media sector, suggesting terminal decline is being priced in by acquirers. Legacy assets may still generate significant short-term cash flow despite low terminal value.
WBD
WATCH News Anchors
Financial Reporters
"Paramount would be willing to go up at a minimum to 31 a share... they want to buy the entire thing." This establishes a hard price floor and a takeover premium for Warner Bros. Discovery. The existence of a bidding war (vs. Netflix) typically forces the final clearing price higher. The stock is "in play" with a defined upside target ($31), making it a potential arbitrage opportunity. Regulatory antitrust blocking the deal; deal talks falling through after the 7-day waiver. 0:00
AVOID News Anchors
Financial Reporters
"The president himself had expressed skepticism on Netflix and specifically zeroing in on CNN." Even if Netflix has the capital to bid, the political cost and regulatory friction of acquiring a major news asset (CNN) creates a "poison pill" effect. The deal is unlikely to pass antitrust hurdles without massive concessions, making the bid a distraction. Regulatory headwinds make the acquisition path unlikely to succeed, limiting the upside of this specific catalyst. Netflix could win the bid by making significant divestitures (e.g., selling CNN immediately). 0:37