Analyst Highlights Potential $3 Billion Synergies in Paramount Skydance's Bid for Warner Bros. Discovery
Benchmark Co. analyst Daniel Kurnos reiterates a Buy rating on Paramount Skydance, citing potential $3 billion in cost synergies from a proposed acquisition of Warner Bros. Discovery.
Benchmark Co. analyst Daniel Kurnos has reaffirmed his Buy rating on Paramount Skydance (PSKY) stock, following reports of a potential all-cash acquisition of Warner Bros. Discovery (WBD). Kurnos estimates that such a merger could yield approximately $3 billion in cost synergies, primarily through reductions in content expenses and marketing costs. He suggests that Paramount could offer $18 per share for Warner Bros. Discovery, resulting in a deal that is value-neutral or slightly accretive, depending on the combined company's EBITDA. Since news of the proposal emerged, PSKY stock has risen nearly 25%, while WBD shares have increased by more than 40%.