Warner Bros. Discovery Stock Surges: Benchmark Reaffirms Buy Rating Amid Paramount Skydance Bid Rumors
Warner Bros. Discovery (WBD) stock is making waves, soaring 33.5% in a week, as Benchmark reiterates its bullish Buy rating with an $18 price target. Fueled by reports of a potential acquisition bid from Paramount Skydance, the entertainment giant is capturing Wall Street’s attention.
Benchmark’s Bullish Stance on WBD
On September 12, 2025, Benchmark reaffirmed its Buy rating on Warner Bros. Discovery (NASDAQ: WBD), naming it a “Best Idea” in its coverage universe. Analyst Matthew Harrigan maintained an $18 price target, signaling strong confidence despite the stock’s recent 53% year-to-date gain. The firm believes WBD’s current price of $17.98, as shown in the finance card above, undervalues its intermediate earnings potential.
Benchmark highlighted WBD’s strategic moves, including $5 billion in cost reductions and robust HBO Max and studio initiatives. These efforts are driving results, even as the company navigates the decline of linear television. The analyst’s optimism aligns with WBD’s $38.4 billion in revenue and $8 billion in EBITDA, positioning it as a heavyweight in the media landscape.
Paramount Skydance Bid Rumors Ignite Speculation
The catalyst behind WBD’s stock surge? Reports that Paramount Skydance, backed by Oracle founder Larry Ellison, is preparing a predominantly cash offer for WBD, potentially as early as next week. The Wall Street Journal first broke the news, with CNBC confirming that bankers have been hired to structure the deal. This follows Skydance’s recent acquisition of Paramount Global, signaling an aggressive consolidation push in the entertainment sector.
WBD’s planned separation into two entities—Warner Bros. (studios and HBO Max) and Discovery Global (cable and Discovery+)—by April 2026 adds complexity. Benchmark notes that a bid before the split could face tax hurdles for 12 months post-separation, incentivizing swift action from suitors.
Analyst Sentiment and Market Performance
The finance card above details WBD’s meteoric rise, with a current price of $17.98, up 8.75% in a day, hitting a yearly high of $18.06. Over the past month, the stock climbed from $11.68 on August 29 to $17.98, a 53% jump, reflecting strong momentum. Over the past year, WBD has soared 68%, per Investing.com, far outpacing the broader market.
Other analysts share Benchmark’s enthusiasm. Wells Fargo and CFRA raised price targets to $14, while KeyBanc set an $18 target, citing WBD’s studio and streaming strength. However, Bernstein’s Market Perform rating at $13 suggests some caution, pointing to linear TV challenges. The average 12-month price target among 12 analysts is $14.25, implying a modest upside from current levels.
Public reactions on X reflect excitement, with users like @StockGuru22 posting, “$WBD on fire! Skydance bid rumors + Benchmark’s Buy = time to load up?” Others urge caution, citing regulatory risks for such a mega-deal.
Impact on U.S. Investors and the Entertainment Industry
For U.S. readers, WBD’s stock surge and potential acquisition have far-reaching implications. Economically, a Paramount Skydance-WBD merger could reshape the $600 billion global media market, boosting competition with Netflix and Disney but raising antitrust concerns. Investors holding WBD, with a market cap of $31 billion, stand to benefit from a premium bid, potentially above $20 per share.
Lifestyle-wise, a consolidated media giant could accelerate streaming wars, affecting consumer choices and subscription costs. Politically, the deal might draw scrutiny from regulators, especially under a Trump administration wary of media monopolies. Technologically, WBD’s HBO Max advancements, like AI-driven content personalization, could gain scale with Skydance’s resources, enhancing viewer experiences.
Looking Ahead: A Blockbuster Deal or Hype Overdrive?
Benchmark’s reiterated Buy rating and the Paramount Skydance rumors have thrust Warner Bros. Discovery into the spotlight. With its stock nearing a yearly high and a potential acquisition looming, WBD is a focal point for investors and industry watchers alike. However, regulatory hurdles and the planned 2026 split could complicate any deal.
As the media landscape evolves, WBD’s strategic cost-cutting and streaming growth make it a compelling bet, whether it remains independent or merges. For now, the market’s betting big on WBD’s next act—stay tuned for what could be a cinematic showdown.
SEO Tags: Warner Bros. Discovery stock, WBD Buy rating, Benchmark WBD price target, Paramount Skydance bid rumors, WBD stock surge 2025, entertainment industry merger, HBO Max growth, media stock investing, U.S. stock market trends, streaming wars 2025