Not long ago, we heard about the possibility that media giant Warner Bros Discovery (NASDAQ:WBD) might stage a merger with Paramount (NASDAQ:PARA). This news came as Paramount was being actively courted by at least two other buyers, including Byron Allen and Skydance Media. Now, Warner is out of the race altogether, and that sent shares up over 1.5% in Tuesday afternoon’s trading.
Reports note that Warner no longer has its eyes on Paramount, whose stock is currently hovering around a low not seen in the last 52 weeks. While Skydance is still in the running, and Byron Allen still has an offer on the table, there’s one more entrant that may ultimately come through – Comcast (NASDAQ:CMCSA).
Comcast isn’t interested in buying anything from Paramount, but it is open to a partnership effort that could include a package bundle with a split of revenue or something similar.
Streaming Growth is Slowing
It’s not clear why Warner pulled the plug. Maybe Warner thinks it can get a better deal if it holds out for a while. But it’s clear that Paramount itself is looking more and more interested in selling out to somebody with sufficiently deep pockets. Meanwhile, it’s worth noting that streaming growth is stalling out; growth rates in 2023 were half of what they were in 2022.
That makes sense; with return-to-office mandates firing up, inflation running rampant, and concerns about joblessness kicking up in the tech sector, consumers are likely watching their wallets that much more closely.
What Is the WBD Forecast for 2024?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on five Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 44.91% loss in its share price over the past year, the average WBD price target of $13.94 per share implies 60.69% upside potential.
