Paramount Skydance’s Target Price Up 27% to $14 After $81 B Warner Bros. Deal
Guggenheim raised Paramount Skydance’s target price by 27.3% to $14 after PSKY agreed to acquire Warner Bros. Discovery for $81 billion, financed with $47 billion equity and $54 billion debt. Warner Bros. CEO and eight executives sold $211 million of shares at a 10% discount, with US DOJ and UK/EU/state approvals expected by Q3.
1. Price Target Increase
Guggenheim increased its target price on Paramount Skydance by 27.3% to $14 following the announcement that PSKY will acquire Warner Bros. Discovery for $81 billion. The upgrade reflects confidence in the combined entity’s scale and pro forma financial outlook.
2. Deal Financing and Outlook
The acquisition will be financed with $47 billion in equity contributions from the Ellison family and RedBird and a $54 billion bridge loan from Bank of America, Citi and Apollo. Management projects the combined company to generate $69 billion in revenue and $18 billion in adjusted EBITDA in 2026.
3. Insider Sales and Regulatory Status
Warner Bros. Discovery CEO and eight executives sold a total of $211 million in shares at roughly a 10% discount to the $31 takeover price. US Department of Justice clearance has been secured, while approvals in the UK, EU and US states are expected before the deal closes in Q3.