Why Did WBD Shares Jump Today? Paramount Amends $30 Buyout Offer

Warner Bros. Discovery, Inc. (NASDAQ: WBD) shares surged in premarket trading on Monday, December 22, 2025, following Paramount Skydance Corporation’s announcement of significant amendments to its $30 per share all-cash acquisition offer. The stock jumped 3.82% to $28.83 in premarket trading as of 8:54 AM EST, building on its previous close of $27.77.

The rally comes as Paramount directly addresses concerns raised by WBD’s board of directors regarding financing certainty, particularly around billionaire Larry Ellison’s backing of the hostile takeover bid.

Paramount Strengthens Bid With Financing Guarantees

Paramount Skydance has substantially strengthened its hostile bid for Warner Bros. Discovery by securing an irrevocable personal guarantee from Oracle co-founder Larry Ellison for $40.4 billion of equity financing. This direct response addresses concerns previously voiced by WBD chairman Samuel Di Piazza, who told CNBC last week that the board “was not confident that one of the richest people in the world would be there at closing.”

The amendment represents a significant escalation in Paramount’s pursuit of WBD, which currently has an agreement to sell its studio and streaming assets to Netflix in a transaction valued at roughly $83 billion on an enterprise basis.

Beyond the personal guarantee, Paramount published records confirming the Ellison family trust owns approximately 1.16 billion shares of Oracle common stock, with all material liabilities publicly disclosed. Ellison has also agreed not to revoke the family trust or adversely transfer its assets during the transaction’s pendency.

Additionally, Paramount increased its regulatory reverse termination fee from $5 billion to $5.8 billion to match Netflix’s pending offer, while extending the tender offer expiration date to January 21, 2026. The company maintains its position that the $30 per share all-cash offer, representing an enterprise value of $108.4 billion, remains superior to the Netflix deal.

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WBD Stock Climbs Amid Competing Acquisition Proposals

Warner Bros. Discovery shares have experienced remarkable volatility amid the competing acquisition bids, with the stock delivering a 162.72% year-to-date return and 164.73% over the past year as of December 19, 2025. The company’s market capitalization stands at $68.83 billion with an enterprise value of $98.05 billion.

Despite these gains, WBD’s 5-year return remains slightly negative at -0.11%, reflecting the broader challenges facing traditional media companies. The stock trades at a trailing P/E ratio of 146.16, though analysts project significant earnings improvement with a forward P/E of just 2.50.

As of December 19, 2025, only 397,252 shares had been tendered to Paramount’s offer, suggesting shareholders are waiting for further developments before committing. Analyst price targets for WBD range from a low of $20.00 to a high of $35.00, with an average target of $26.77, slightly below the current trading price.

The amended Paramount offer, combined with Netflix’s competing bid, has created an unusual bidding war scenario that could ultimately benefit WBD shareholders, though regulatory approval and financing execution remain key uncertainties for either proposed transaction.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.