All I want for Christmas is an answer to the question of who will own entertainment giant Warner Bros. Discovery (WBD) in 2026. And it looks like Warner is delivering just that, because it plans to make an announcement about who will buy it, or if it will split, before Christmas this year. That news bolstered investors, who sent shares up fractionally in the closing minutes of Wednesday’s trading.
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This means that bidding is likely to get a lot more aggressive in the near term, if it is going to happen at all. With Paramount Skydance (PSKY) having placed several bids so far, Netflix (NFLX) currently working one up, and several others potentially getting into the action, we should be hearing quite a bit more about this in the days, and possibly few weeks, ahead.
In fact, Paramount seems especially eager to get Warner under its umbrella. Reports suggest that Paramount is already considering taking an offer directly to shareholders if Warner refuses to budge or otherwise stalls. With a plan to reveal its overall course in less than two months, however, there is not much room for Warner to stall. Warner is apparently somewhat concerned about this, and asked Paramount to sign a non-disclosure agreement that would prevent Paramount from setting up a so-called “hostile” offer, for now. Paramount is not planning to sign such an agreement, which means this could go hostile quickly.
A New Animation Deal
But even as that all shakes out, Warner still has to run as normal. And it recently set up a new effort with one of the biggest animation studios in Latin America, Mundoloco CGI, perhaps best known for Mini Beat Power Rockers and Underdogs. The new effort looks to improve production of animated series located in Latin America, setting up a contest to find those new projects.
The joint project, known as the WBD + Mundoloco CGI Launchpad Series, has already picked seven finalists. One of these finalists will land a six-month development deal. The biggest factor going into picking the winner, reports suggest, is a clear sense of originality. Mundoloco’s co-founder and CEO Gaston Gorali noted, “Most projects tend to look or feel familiar, like something we’ve already seen. We’re after the exact opposite of that.”
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on eight Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 169.69% rally in its share price over the past year, the average WBD price target of $20.75 per share implies 8.63% downside risk.
