Something unexpected recently emerged in the sale of entertainment giant Warner Bros. Discovery (WBD), as it seems the Trump administration may have a preferred buyer. Would it surprise you to hear that it is actually Paramount Skydance (PSKY) that has the Trump administration’s ear on this one? It likely surprised investors, too, and Warner shares dipped fractionally in the closing minutes of Monday’s trading.
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Reports suggest that the Trump administration is behind Paramount Skydance to buy Warner, and the reason why might surprise you. While the Trump administration served as a bit of a roadblock to get Paramount Skydance off the ground to begin with back when it was just Paramount, apparently, that has changed sufficiently to get the Trump administration on Paramount Skydance’s side in buying Warner.
Reports from “insiders,” according to the New York Post, suggest that Trump wants positive coverage from CNN, and a CNN under Paramount Skydance’s control would likely give it to him. Conversely, reports suggest, this is why the Trump administration would have a problem with Comcast (CMCSA) stepping in as it owns MSNBC, which has historically been against Trump. Though there seems to be little concern about Netflix (NFLX) or a tech company slipping in in similar fashion.
Reholstered Gunn
Remember when we came out with the idea that Paramount buying Warner might hit hard and see the loss of James Gunn, one of the biggest figures in the DC Universe these days? Some are beginning to wonder if Netflix stepping in to buy Warner might result in a major fan-backed movement to “restore the SnyderVerse.”
The “SnyderVerse” here refers to the portions of the DC Extended Universe helmed by Zack Snyder. James Gunn, meanwhile, has been actively trying to remove the SnyderVerse from consideration, some reports note. So a fan-backed movement to restore the SnyderVerse might do better at Paramount, as Gunn might be out. Netflix, meanwhile, would likely have little interest in scrapping what Gunn has already done in favor of bringing back something that has been at least somewhat phased out.
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 174.79% rally in its share price over the past year, the average WBD price target of $20.75 per share implies 6.66% downside risk.
