Why Is Paramount Skydance Stock Rising Premarket? Warner Bros. Revisits Offer

Shares of Paramount Skydance Corporation (PSKY) surged in premarket trading on February 17, 2026, climbing 3.68% to $10.70 as of 5:23 AM EST, following a Bloomberg report that Warner Bros. Discovery is weighing whether to reopen acquisition talks with the Hollywood studio.

The move comes after Paramount submitted a sweetened amended offer on February 10 that addressed several of Warner Bros.’ key concerns, reigniting what has become one of the most closely watched bidding wars in media history. The development puts Netflix, which holds a binding $27.75-per-share agreement with Warner Bros., on notice that its deal may face a serious challenge, potentially forcing the streaming giant to raise its own bid to defend its position.

New Terms Could Pressure Netflix’s Existing Deal

Warner Bros. Discovery’s board is actively discussing whether Paramount Skydance’s amended offer could represent a superior path forward compared to its existing binding agreement with Netflix, according to people familiar with the matter who asked not to be identified discussing nonpublic information.

While the board has not yet decided how to formally respond, this marks the first time it has openly weighed whether Paramount’s proposal could either outright beat the Netflix deal or at least pressure Netflix into raising its own bid. The board has also faced mounting pressure from shareholders to engage with Paramount rather than dismiss its overtures outright.

Paramount’s amended terms went well beyond simply raising its per-share price. The company agreed to cover the $2.8 billion breakup fee that Warner Bros. would owe Netflix if it terminates their agreement, and committed to backstopping up to $1.5 billion in Warner Bros. debt refinancing costs – two sticking points that had previously given the Warner Bros. board pause.

Paramount also pledged to pay a $650 million quarterly ticking fee, equivalent to $0.25 per share, if the deal has not closed by December 31, signaling strong confidence that it can secure swift regulatory approval.

Both Paramount CEO David Ellison and Netflix leadership have publicly indicated they are willing to raise their bids if necessary. Ellison has explicitly stated that Paramount’s current $30-per-share tender offer is not its last and final bid, while Netflix has similarly signaled to shareholders it could go higher.

If Warner Bros. chooses to re-engage with Paramount, it must first notify Netflix, at which point Netflix would gain the right to match any superior offer Paramount tables.

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PSKY Stock Snapshot: Premarket Move and Key Metrics

Paramount Skydance Corporation stock closed at $10.32 on February 13, 2026, up $0.07 (+0.68%) on the session, before surging an additional $0.38 (+3.68%) to $10.70 in premarket trading as of 5:23 AM EST on February 17, a move directly tied to the Bloomberg report on Warner Bros.’ deliberations.

The stock has faced significant headwinds in recent months, posting a year-to-date return of -22.99% and a five-year return of -80.09%, starkly underperforming the S&P 500’s comparable gains of -0.14% and +73.73% respectively. The company’s 52-week range of $9.95 to $20.86 reflects the volatility that has plagued the stock throughout the ongoing M&A saga, with the current price sitting closer to its annual low than its high.

From a valuation standpoint, PSKY trades at a Price/Sales ratio of just 0.24 and a Price/Book of 0.95, suggesting the market is pricing in considerable uncertainty around the company’s standalone prospects.

The company reported Q3 FY25 revenue of $6.7 billion but posted a net loss of $24 million for the quarter, missing EPS estimates of +$0.41 by a wide margin with an actual result of -$0.12. With a trailing P/E of 344 and a forward P/E of 10.45, much of the stock’s near-term valuation appears tied to deal speculation rather than underlying earnings momentum.

Analyst sentiment on PSKY remains cautious independent of deal activity. According to TipRanks, the stock carries a Moderate Sell consensus rating based on zero Buy ratings, one Hold, and three Sell ratings, with an average price target of $12.33, implying roughly 19.5% upside from recent levels.

Yahoo Finance’s consensus 1-year price target stands at $14.39, well above the current trading price, suggesting that a successful acquisition could unlock meaningful value for shareholders. The company’s next earnings release is scheduled for February 25, 2026, which will be closely watched for any update on the deal landscape.

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.