Paramount Skydance (PSKY) stock was the top percentage decliner on the S&P 500 this week, after the David Ellison-led company lost out on the fight for Warner Bros. Discovery (WBD) to Netflix (NFLX) despite multiple sweetened bids.
Shares of PSKY slumped -16.5% this week and slid -9.8% on Friday alone after Netflix’s (NFLX) announcement to buy Warner Bros. Discovery’s (WBD) film and television studios and streaming assets in a deal with a total enterprise value of about $82.7B.
According to reports from Reuters and CNBC, Paramount (PSKY) courted Warner Bros. (WBD) with three sweetened unsolicited offers that were all rejected by the company, after which WBD kicked off an auction on October 21. Netflix (NFLX) then entered the fray.
CNBC on Friday said PSKY was evaluating taking another improved offer that could be even higher than its previous $30/share bid straight to WBD’s shareholders.
For now, Netflix’s (NFLX) move has resulted in one of the biggest media deals in the last decade, one that will add a trove of beloved movie franchises to the streaming pioneer’s massive library.
Also see: Top SA Quant-rated communication services stocks amid NFLX-WBD blockbuster.