Warner Bros. Bidding War Potential: How High Could WBD Shares Go?

Key Points

• Warner Bros Discovery has surged over the past several months, putting shares more than +90% in 2025.
• The company says multiple parties are looking to buy some or all of the firm, including the world's biggest streaming company.
• Warner Bros is looking to pit three firms against each other to maximize shareholder value. Its CEO has a highly ambitious target.

Within the U.S. entertainment and media industry, one unlikely name is in the top echelon of stock market performers in 2025. That company is Warner Bros. Discovery NASDAQ: WBD. It has delivered a total return of approximately 94%, a top-three figure among U.S. large-cap media and entertainment stocks.

Warner Bros.' place as a traditional media company is what makes its gain uncanny. Despite strong growth in its HBO Max streaming service, WBD’s movie studios and linear TV business still make up the overwhelming majority of its revenue. The rise of streaming services has severely damaged these businesses over the past few years. However, Warner Bros. has something that every media company wants, but is difficult to create: content. Now, it appears that Warner Bros. may be in the midst of a bidding war as firms look to acquire this valuable resource. Below, we’ll discuss this battle that is causing Warner Bros.' shares to skyrocket. Ultimately, is there an opportunity for investors to take advantage of Warner Bros.' enviable position?

Warner Bros Plays Hard to Get With Paramount Skydance

Most of Warner Bros.’ 2025 ascent has come over the past several weeks, with shares up more than 75% since the beginning of September. The rally really kicked off on Sept. 11. Reports emerged that Paramount Skydance NASDAQ: PSKY was preparing an offer aimed at taking over the entirety of WBD. This led WBD shares to gain 55% in three days. Paramount Skydance recently underwent its own merger, with backing from Larry Ellison. Ellison has deep pockets, being the co-founder of Oracle and the second-richest person in the world.

Paramount Skydance has previously shown its willingness to pay up for content. It signed a $1.1 billion per year deal to broadcast the Ultimate Fighting Championship in August, double what ESPN paid previously. As Paramount Skydance looks to bolster its content library, Warner Bros. has become its next target. However, WBD is looking to extract as much money out of a potential deal as possible. It reportedly rejected an almost $24 per share offer from PSKY. Had it accepted the deal, WBD shares would have spiked to nearly $24, an approximately 17% premium over their Oct. 22 closing price. If the price that another firm is willing to pay rises higher, investors could potentially see an even larger gain in the future. That’s where Netflix NASDAQ: NFLX and Comcast NASDAQ: CMCSA come in.

Netflix and Comcast: WBD’s Latest Suitors

On Oct. 21, Warner Bros.’ shares spiked another 11%. This came after the company announced that it had initiated a “review of potential alternatives to maximize shareholder value." In other words, the company is listening to offers. Warner Bros. said that it had received “unsolicited offers” from “multiple parties” looking to buy some or all of the company. Reports then surfaced that Netflix and Comcast are among those parties. Those are two massive companies that Warner Bros. would love to pit against Paramount Skydance, both valued at over $100 billion.

Netflix knows that content is king. Having access to Warner Bros.' library could be huge for its growth and media domination ambitions. DC Comics, Harry Potter, Lord of the Rings, and Game of Thrones are some of the most well-known and successful media franchises ever created. Warner Bros. owns them all. Comcast could also use these intellectual properties to drive growth in its Peacock streaming platform.

Still, one key question will be regulatory approval, as Warner Bros' takeover would consolidate a large amount of the media industry. It would likely be the most difficult for Comcast to gain approval.

WBD CEO Seeks Near 95% Premium Over Oct. 22 Price

It looks like there is clearly a bidding war taking place for Warner Bros. Discovery. Chief Executive Officer David Zaslav is reportedly seeking an offer of $40 per share for the company. That would represent nearly a 95% premium over its Oct. 22 closing price. Notably, Deutsche Bank and Benchmark both raised their WBD price targets to $23 and $25, respectively.

Overall, it seems increasingly likely that a deal to buy Warner Bros. will happen over the next several months to a year. If it does, shareholders could see substantial gains, especially if Zaslav gets the deal he wants. However, the possibility that a deal does not materialize is a big risk to shares, as this is the main thing supporting WBD’s stock price.