Warner Bros. Discovery (WBD) Stock Downgraded as Merger Delay Adds Uncertainty

TLDR

• Seaport Research Partners downgraded WBD to Neutral from Buy following the merger pause
• Paramount Skydance halted its $31/share acquisition until legal issues are resolved or June 1, 2027
• 12 states and the Writers Guild of America are challenging the $110 billion deal on antitrust grounds
• Seaport also cut Q2 revenue estimates by $236 million to $9.07 billion after Supergirl’s weak box office
• WBD stock dipped to $25.60, a 21% discount to the agreed acquisition price

Warner Bros. Discovery stock slipped 0.7% to $25.60 ahead of Monday’s open, sitting at a 21% discount to the $31 per share Paramount Skydance agreed to pay.

Warner Bros. Discovery, Inc., WBD

That gap now looks harder to close after Paramount paused the deal on Friday, sending a clear signal to Wall Street that the road ahead is long.

Seaport Research Partners moved quickly, downgrading WBD to Neutral from Buy on Sunday.

Analyst David Joyce summed it up plainly: “With this additional delay and potential uncertainty, we think there are better areas to deploy capital.”

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