Andrew A. Rosen (@parqor): "Will WBD be acquired by Paramount? Most likely. But CEO David Zaslav has acknowledged to staff that that the deal may not be approved. In that instance WBD may walk off with a $7B break-up fee but it will also be forced to confront existential challenges it has discounted in it…"

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Will WBD be acquired by Paramount? Most likely.

But CEO David Zaslav has acknowledged to staff that that the deal may not be approved. In that instance WBD may walk off with a $7B break-up fee but it will also be forced to confront existential challenges it has discounted in its hunt for a potential buyer.

Without a deal, all traditional solutions will be off the table. The company will not be worth $31 per share to any other company. WBD ended 2025 with $29 billion in net debt, a leverage ratio of 3.3x, free cash flow down 30% and its largest revenue segment—linear networks—in double-digit decline. Netflix may still be interested in Warner Bros., but at a lower price per share than $27 and without a competing bidder.

Andrew A. Rosen

Mar 24

12:47 AM

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