Warner Bros Discovery stock falls on merger concerns and downgrade

Investing.com -- Warner Bros Discovery (NASDAQ: WBD) stock fell 8% following analyst downgrade and complications regarding a potential merger with Paramount Skydance.

CNBC’s David Faber reported that there "may be a bit of a longer wait" for Paramount Skydance to make a bid for Warner Bros. than initially anticipated. This news dampened investor enthusiasm that had previously driven shares higher on merger speculation.

Adding to the pressure, Senator Elizabeth Warren publicly criticized the potential deal on social media platform X. Warren stated the merger "would be a dangerous concentration of power over our media and news" and called for it to be blocked, just days after WBD shares surged on reports of Paramount Skydance Corp (NASDAQ: PSKY) preparing a primarily cash-based offer.

Further weighing on the stock, TD Cowen analyst Doug Creutz downgraded Warner Brothers Discovery from Buy to Hold with a $14.00 price target. Creutz expressed concern about the risk-reward profile, noting that while PSKY might offer a bid exceeding $20 per share, WBD shares could quickly return to the $11-$12 range if no deal materializes.

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