Warner Bros. Discovery Stock Jumped 11% Today – Here’s What Happened

Warner Bros. Discovery Inc. (WBD) continued to attract significant investor interest after The Wall Street Journal reported on Thursday that Paramount Skydance (PSKY) was preparing a majority cash bid for the company.

Benchmark analyst Matthew Harrigan reaffirmed his bullish stance on the stock, maintaining it as one of the firm’s top investment ideas. 

Warner Bros. Discovery stock traded over 11% higher on Friday morning. On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume improved to ‘extremely high’ from ‘high’ levels. The stock saw a 5,327% increase in user message count in 24 hours. 

Harrigan maintained an $18 price target on the stock. According to the analyst, a takeover deal would be difficult for other potential buyers to rival, given Skydance’s strong financial backing and potential operational synergies. "Would be surprised if another suitor arose to credibly challenge,” Harrigan remarked.  

Paramount is led by David Ellison, the son of billionaire Larry Ellison. Paramount recently completed its merger with Skydance in August, combining its legacy broadcasting, cable channels, and film production operations.

The analyst suggested that a full sum-of-the-parts analysis points to a possible valuation closer to $20 per share. This higher figure takes into account the longer-term earnings potential from Warner Bros. Discovery’s studio segment and its streaming platform, HBO Max.

Warner had last year announced a plan to divide its operations into two divisions, one focusing on traditional cable TV and another on streaming and studios. In July, the company unveiled the official names and leadership structures for its two soon-to-be independent companies, which are scheduled to emerge in mid-2026. 

WBD stock has gained over 75% in 2025 and over 142% in the last 12 months. 

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