Warner Bros. Discovery Shares Surge Amid Paramount Skydance Takeover Reports

Warner Bros. Discovery's stock experienced a significant increase on Thursday, closing nearly 29% higher at $16.17, following reports that Paramount Skydance is preparing a majority-cash offer to acquire the media conglomerate.

Paramount Skydance, led by CEO David Ellison, is reportedly working with an investment bank to prepare the bid, which would encompass Warner Bros. Discovery's movie studios, streaming assets, and cable television networks.

The potential acquisition comes shortly after Skydance's $8.4 billion merger with Paramount Global, a deal that received regulatory approval in late July.

Representatives for both Paramount Skydance and Warner Bros. Discovery have declined to comment on the matter.

In the broader market, the S&P 500 advanced 0.9%, marking a third consecutive record close. The Dow Jones Industrial Average rose approximately 1.4%, surpassing the 46,000-point milestone for the first time, while the Nasdaq Composite gained 0.7%, also achieving a record close.

Other notable stock movements included Synopsys, which rebounded 13% after a previous 36% decline, and Centene, which saw a 9% increase after affirming its annual profit guidance. Conversely, Oracle shares fell 6.2%, reversing some of the gains from the previous session, and Netflix declined 3.5% following the announcement of Chief Product Officer Eunice Kim's departure.