Warner Bros. Discovery, Inc. - Nasdaq: WBD
Communication Services · Broadcasting
$26.64
-0.71%
Vol: 6.3M
Research Digest
Tuesday, June 16, 2026
DOJ cleared Paramount's $111B takeover of Warner Bros. Discovery despite career staff leaning toward a lawsuit, with state AGs still threatening to sue.
On June 12, 2026 the DOJ antitrust division approved Paramount Skydance's roughly $111 billion acquisition of Warner Bros. Discovery (at $31.00 per share in cash), finding no threat to competition. Reports surfacing June 15 indicate career staff investigators had spent eight months reviewing over 2 million documents and were leaning toward recommending a lawsuit before senior officials signed off, raising questions about the clearance. The deal still faces challenges: California, New York and other states are preparing a potential lawsuit, and EU/UK regulators set provisional July 7 and July 14 review deadlines. Paramount has pledged to close by September 30 or pay shareholders a daily ticking fee. WBD traded around $26.47, below the $31 deal price, reflecting remaining closing risk. The risk is that state or international regulators block or delay the merger, leaving WBD exposed to a wide deal-break spread.
Previous Market Intelligence
13 daysJun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14U.S. DOJ cleared Paramount Skydance's $110B acquisition of Warner Bros. Discovery on June 12, removing a key antitrust hurdle for the megamerger.Positive▶
On June 12, 2026, the U.S. Justice Department cleared Paramount Skydance's proposed ~$110 billion acquisition of Warner Bros. Discovery, concluding the combination would not harm competition. The deal, originally agreed on April 23, 2026, had already been approved by WBD stockholders, leaving DOJ antitrust review as a major remaining gate. The clearance materially de-risks the transaction and supports WBD's share price, which has traded near the high-$26 to $28 range versus a 52-week low under $10. WBD continues to operate three segments (Streaming, Studios, Global Linear Networks) and recently showcased new cross-platform ad solutions at Upfront 2026. The bear case is that additional regulatory reviews remain pending and could still affect timing or terms, and integration risk and high media-sector leverage persist. A failed or delayed close would remove the takeout premium currently embedded in the stock.
May 21Warner Bros. Discovery faces U.S. and EU regulatory scrutiny on $110B Paramount Skydance merger after shareholders approved the dealMixed▶
U.S. and EU lawmakers pledged European scrutiny of Paramount Skydance's takeover of Warner Bros. Discovery on May 14, after WBD shareholders approved the ~$110B merger. Management reaffirmed a September 2026 closing target on May 4. WBD hosted its annual upfront at Madison Square Garden on May 13, presenting its film slate (including 'A Minecraft Movie 2' and M. Night Shyamalan's 'Remain') and HBO Max content lineup. Q1 2026 results reported May 6 showed revenue of $8.9B (-3% ex-FX) and a GAAP loss of -$1.17 per share, hit by a $2.8B termination fee triggered when Paramount Skydance beat Netflix for the asset. HBO Max surpassed 140M subscribers. The 20-analyst consensus rating is Hold with a 12-month target of $29.65.
May 20WBD launched consent solicitations on senior notes tied to the Paramount acquisition as U.S. and EU lawmakers signaled European antitrust scrutiny of the $110B deal.Mixed▶
On May 19, WBD launched consent solicitations across multiple series of senior notes issued by its subsidiaries, seeking holder approval for indenture amendments and revised terms for potential Junior Lien Exchange Notes tied to the pending Paramount acquisition. On May 14, U.S. and EU lawmakers pledged European antitrust scrutiny of the Paramount-WBD deal, which closed-date expectations now point to Q3 2026 (September). WBD recently unveiled a new cross-platform advertising initiative called "Unbreakable" on May 13 during its upfront. Earlier in the month, Q1 2026 results showed total revenue of $8.9B (-3% ex-FX) and a $2.9B net loss tied to the Paramount deal, though management expects to finish the year with more than 150M HBO Max subscribers. Average analyst rating is Hold with a 12-month PT of $29.65.
May 19Warner Bros. Discovery posts $2.9B net loss tied to Paramount Skydance deal as US/EU lawmakers pledge regulatory scrutiny of the merger.Mixed▶
WBD reported a wider-than-expected loss driven by a significant termination/related charge tied to its Paramount Skydance combination, posting a $2.9 billion net loss reported in May 2026. U.S. and EU lawmakers on May 14, 2026 pledged European antitrust scrutiny of the Paramount-WBD deal, raising the risk of conditions or delays. Management also said HBO Max remains on track to surpass 150 million subscribers by year-end, supporting the Streaming & Studios growth story. The bear case is that regulatory friction in Europe could force divestitures or block synergies, while the large headline loss and Netflix-linked termination fee weigh on near-term FCF. Analyst consensus remains Hold with a 12-month price target near $29.65, leaving limited upside until merger clarity arrives.
May 18Warner Bros. Discovery upfront pitches advertisers as Paramount Skydance acquisition tracks toward Q3 2026 close.Mixed▶
WBD held its 2026 upfront on May 13, opening with a tribute to Ted Turner and showcasing the James Gunn 'Superman' film, HBO's 'Harry Potter' TV series, and the broader portfolio. The pending Paramount Skydance $31/share acquisition was reaffirmed on May 4 as on track for a Q3/fall 2026 close, pending regulatory approval. Q1 2026 results (reported May 6) showed revenue of $8.9B (-3% ex-FX) and a net loss of $2.9B that included a $1.3B acquisition-related charge and a $2.8B termination fee paid to Netflix. HBO Max surpassed 140M subscribers with guidance for 150M+ by year-end. Shares traded near $27.11 on May 8 with a Buy consensus from 17 analysts as of May 9.
May 15Warner Bros. Discovery held Upfront 2026 at MSG on May 13 amid pending $110 billion Paramount Skydance acquisition reaffirmed to close September 2026.Mixed▶
Warner Bros. Discovery held its annual upfront presentation on May 13, 2026 at Madison Square Garden, featuring a tribute to Ted Turner and showcasing properties from James Gunn's Superman to HBO's Harry Potter series. Executives directly addressed the pending Paramount Skydance acquisition, with shareholders having approved the $110 billion merger and closure reaffirmed for September 2026. Q1 2026 results showed revenues of $8.9 billion (-3% ex-FX) and a net loss of $2.9 billion including $1.3 billion of acquisition-related charges. HBO Max surpassed 140 million subscribers despite a wider-than-expected loss largely tied to a Netflix termination fee. Q1 EPS of -$1.17 missed estimates of -$0.07.
May 14Warner Bros. Discovery shareholders approve $110B Paramount Skydance merger amid Q1 2026 missMixed▶
WBD shareholders approved the $31/share Paramount Skydance acquisition, valued at roughly $110 billion, while the company reported Q1 2026 results on May 6 that missed expectations. Net loss was $2.9 billion (including $1.3B of acquisition-related amortization, content step-up, and restructuring charges) on revenue of $8.9 billion, down 3% ex-FX. EPS of -$1.17 missed the -$0.07 consensus by a wide margin, weighed down by a $2.8B Netflix termination fee. HBO Max surpassed 140 million subscribers, providing one bright spot in streaming. The merger creates near-term clarity but regulatory review and potential political interference could extend the closing timeline. Analyst consensus remains Buy with an average price target near $23.87.
May 13Discovery Global hosts inaugural 2026 Upfront presentation at MSG as Paramount Skydance merger nears late-May/early-June close.Mixed▶
Warner Bros. Discovery held its Discovery Global 2026 Upfront presentation on May 13, 2026, alongside ongoing progress on the $110 billion Paramount Skydance merger, which shareholders approved earlier but which now leans toward late-May or early-June close. Recent Q1 2026 results (May 6/7) showed an EPS miss of -$1.17 vs -$0.07 estimate and revenue of $8.89B, including a $2.8B Netflix termination fee. HBO Max surpassed 140 million subscribers with management targeting over 150M by year-end 2026. UBS raised its price target to $31 from $30 on May 7.
May 12WBD shareholders approve $111B Paramount Skydance merger; UBS raises PT to $31 after Q1 loss tied to $2.8B termination fee.Mixed▶
Warner Bros. Discovery shareholders overwhelmingly approved the $111B sale to Paramount Skydance, though they rejected the executive compensation plan that could have provided CEO Zaslav up to $887M. Q1 2026 results showed a $2.9B net loss driven by the $2.8B Netflix termination fee, with revenue of $8.89B (down 3% ex-FX) missing estimates. Streaming revenue rose 9% to $2.89B and Studios revenue jumped 35% to $3.13B, while linear networks declined 8% on the absence of NBA rights. UBS raised its PT to $31 from $30 (Neutral) following the print. Deal closure is reaffirmed for September 2026, pending European regulatory approval.
May 11Warner Bros Discovery shareholders approved $110B Paramount Skydance merger but rejected executive comp packages worth up to $887M for CEO Zaslav.Mixed▶
WBD shareholders approved the $110 billion merger with Paramount Skydance, with deal closing reaffirmed for September 2026, but rejected executive compensation plans tied to the merger that could have given CEO David Zaslav up to $887 million. Q1 2026 results posted May 6 showed revenue of $8.9B (down 3% ex-FX) and a $2.9B net loss, including a $2.8B Netflix termination fee. HBO Max launched in UK, Germany, Italy and Ireland in Q1. UBS raised price target to $31 from $30 (Neutral). Risk: integration complexity and continued linear network declines.
May 8Warner Bros Discovery Q1 misses EPS but approves $110B Paramount merger; streaming shows turnaroundMixed▶
Warner Bros Discovery reported Q1 2026 results on May 6 with revenue flat at $8.89B YoY but net loss per share of -$1.17 vs -$0.07 consensus, missing significantly. The wider loss was driven by a $2.8B Netflix termination fee and $1.3B in acquisition-related charges. However, the streaming segment achieved a dramatic turnaround from a $2B loss to $1.4B profit, with management guiding for 150M+ global subscribers and the 10-year Harry Potter series as the largest streaming event. Shareholders approved the $110B Paramount Skydance merger with projected $69B pro forma FY2026 revenue and $6B in synergies.
May 6Q1 2026 earnings report scheduled for today (May 6) post-market; shareholders approved $110.9B Paramount Skydance mergerMixed▶
Warner Bros. Discovery reports Q1 2026 results today after market close with analyst expectations of $8.95B revenue and -$0.09 EPS loss. Shareholders approved merger with Paramount Skydance on April 23, with WBD shareholders to receive $31.00/share cash (147% premium to unaffected price of $12.54). Transaction expected to close Q3 2026. Company faces headwinds from weak linear TV, advertising softness, and legacy business declines offset by DTC streaming growth. Institutional investors QRG Capital and Credit Industriel increased stakes in Q4.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| WBDWARNER | $26.64 | -0.71% | -1.0% | -3690.5x | 1.55 | $67.3B |
| FOXAFOX | $51.80 | -5.41% | -16.9% | 9.5x | 0.52 | $23.0B |
| FOXFOX | $47.42 | -5.08% | -15.3% | 8.8x | 0.52 | $21.0B |
| GOOGLALPHABET | $374.61 | +1.42% | -7.0% | 25.5x | 1.24 | $4.50T |
| GOOGALPHABET | $372.35 | +1.43% | -6.6% | 25.4x | 1.24 | $4.48T |
| METAMETA | $597.66 | +0.70% | -2.9% | 16.4x | 1.23 | $1.51T |
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