Warner Bros. Discovery, Inc. Series A (NASDAQ: WBD) finished Thursday’s session in the red — and then went quiet after the bell.
As of 6:00 p.m. ET on Dec. 18, 2025, WBD shares were flat in after-hours trading at $27.61, matching the 4:00 p.m. close. On the day, the stock fell $0.60 (-2.13%), with a $28.38 high and $27.41 low, on roughly 64.2 million shares traded.
That closing price matters for one big reason: $27.61 is now slightly below the headline $27.75 per-share value in Netflix’s agreed cash-and-stock transaction — before considering any value (positive or negative) assigned by the market to the planned spin-off of the legacy cable business into “Discovery Global.” [1]
Below is what moved the narrative today, what analysts and derivatives markets are signaling tonight, and the specific items investors will likely be watching before the market opens Friday, Dec. 19, 2025.
After-hours snapshot: where WBD stands going into Friday
WBD’s end-of-day setup (Dec. 18):
- Close: $27.61 (down 2.13%)
- After-hours (6:00 p.m. ET): $27.61 (unchanged)
- Day range: $27.41–$28.38
- Volume: ~64.17M shares
What stands out: the stock is sitting almost exactly on top of the Netflix deal’s headline value ($27.75), but still about $0.14 (roughly 0.5%) below it at the close — a small spread that can be meaningful in merger-arbitrage terms. [2]
The biggest “today” headline: Standard General talks tied to CNN and WBD’s cable networks
The most market-moving WBD-specific report on Dec. 18 came via Reuters, citing the Financial Times: hedge fund Standard General (founded by Soo Kim) has been in discussions to invest in or acquire Warner Bros. Discovery’s television networks, including CNN. Reuters said the talks were initiated by at least one significant WBD shareholder, and noted that neither Standard General nor WBD commented publicly.
Why this matters right now
WBD’s corporate structure is central to the current deal drama:
- Under Netflix’s agreement, WBD’s Global Networks business is expected to be separated into a new publicly traded company commonly described as Discovery Global (the home for cable, sports, and news brands such as CNN and TNT Sports, alongside products like Discovery+ and Bleacher Report).
- If a sophisticated financial buyer is exploring a deal for those cable assets, it could help “price” the spun business at a moment when investors are debating whether Discovery Global will be an asset, an anchor, or something in between.
In short: the Standard General angle is important not just because it’s about CNN — but because it speaks directly to the value of the legacy cable bundle that sits at the heart of the competing transaction narratives.
Why WBD closed below Netflix’s $27.75 headline price
A Bloomberg Law report published today framed the market mood as cooling optimism about a bidding war, noting that WBD shares closed at $27.61, below Netflix’s $27.75 offer value, with traders increasingly acting as though the Netflix deal is becoming the “base case.” [3]
There are a few practical reasons a stock can trade under a signed deal price even when headlines look supportive:
1) Timing and regulatory risk are real (12–18 months is a long time)
Netflix’s transaction materials anticipate a close in 12–18 months and require regulatory approvals and WBD shareholder approval.
Long timelines create room for:
- regulatory uncertainty,
- market drawdowns,
- deal fatigue,
- and shifting political/legal winds.
2) The “Discovery Global” piece is not a simple add-on
Netflix’s press release lays out the structure: WBD shareholders get cash and Netflix stock, and the Global Networks business becomes Discovery Global as a separately traded company.
But how debt is allocated and what the market ultimately believes about the stub’s standalone economics can swing perceived value materially — a point both sides have been hammering in opposite directions.
3) The stock component has a collar — and the math gets complicated fast
Netflix describes a collar mechanism tied to a 15-day VWAP measured shortly before closing. If Netflix trades within a specified range, WBD shareholders receive Netflix stock valued at $4.50 per WBD share; outside that band, the share count adjusts.
This means WBD investors are implicitly also taking a view on Netflix’s future trading levels and volatility during the run-up to closing — which is exactly the kind of uncertainty that can keep spreads open.
Today’s “deal terms refresher” — the numbers investors are trading around
Even if you’ve followed the saga closely, it’s worth restating the key figures because today’s price action is anchored to them.
Netflix’s signed transaction (headline terms)
Netflix’s Dec. 5 release says each WBD shareholder would receive:
- $23.25 in cash + $4.50 in Netflix stock per WBD share (subject to the collar mechanics),
valuing WBD at $27.75 per share and about $72.0B equity value / $82.7B enterprise value.
Netflix also said it expects to realize $2–$3B of annual cost savings by year three and expects the deal to be accretive to GAAP EPS by year two.
Paramount’s competing push (tender offer timeline and price)
Paramount Skydance’s tender materials filed on EDGAR state the offer and withdrawal rights are scheduled to expire at 5:00 p.m. ET on Jan. 8, 2026, unless extended.
That expiration date is a real calendar catalyst: it creates a “next hard checkpoint” for headlines, potential amendments, and investor positioning.
WBD board’s messaging on why it prefers Netflix
In WBD’s shareholder letter released through its investor relations site, the board said the Netflix agreement provides $23.25 cash + $4.50 Netflix stock (within the collar range), plus the additional value/opportunity associated with shares in Discovery Global.
WBD also criticized Paramount’s financing structure, arguing the proposed equity backstop wasn’t what Paramount claimed, and highlighting concerns about reliance on an opaque revocable trust — including language that a cap on liability could limit shareholder protection in a breach scenario.
Paramount’s counterargument (why it says its bid is “superior”)
Paramount’s Dec. 17 release argues its offer is superior because it is $30 per share all-cash, claiming it’s fully financed and criticizing Netflix’s structure — including the collar and the fact that Netflix’s deal would leave WBD shareholders with exposure to a highly leveraged networks “stub” (Discovery Global) and potential adjustments tied to net debt.
Forecasts and market signals from today: what analysts and options traders are implying
Morgan Stanley moves its target sharply higher
A MarketScreener/MT Newswires item dated Dec. 18 says Morgan Stanley maintained an Equalweight rating on WBD while raising its price target to $29 from $15.
Even without the full note, the direction is clear: at least one major firm is explicitly marking up its valuation framework amid the deal swirl.
Options market tone: “mixed,” with low implied volatility but more downside hedging
A TheFly item syndicated via TipRanks today described mixed options sentiment in WBD:
- about 28k contracts traded (light versus typical activity),
- calls leading puts with a put/call ratio around 0.26 (versus typical near 0.48),
- IV30 near 28, described as in the lowest 10% of observations over the past year,
- “expected daily move” around $0.50, and
- a steepening put-call skew, implying increased demand for downside protection (the item also referenced a downgrade to Hold at Spin-Off Research). [4]
How to read that for Friday: call-heavy volume can look bullish on the surface, but a steepening skew often signals institutions quietly paying up for downside protection — consistent with a market that sees binary headline risk but isn’t pricing in huge day-to-day swings right now.
What to know before the market opens tomorrow (Friday, Dec. 19, 2025)
Here’s a practical pre-open checklist for WBD traders, long-term holders, and anyone watching the media mega-deal landscape.
1) Watch for follow-ups on Standard General / CNN chatter
The Reuters report is about talks, not a signed deal, and the parties have not confirmed publicly.
Any of the following could move WBD quickly in premarket:
- confirmation/denial statements,
- details on which specific assets are being discussed (CNN only vs broader networks),
- price/structure leaks (investment vs acquisition),
- or reports of additional bidders circling the networks.
2) Track the “deal-arb spread” vs Netflix’s headline price
WBD closing below the $27.75 headline value tells you the market is still pricing in:
- some probability of deal friction,
- uncertainty around the Discovery Global stub,
- and/or opportunity cost of tying up capital for 12–18 months. [5]
Tomorrow morning, watch:
- WBD premarket prints
- and Netflix’s stock, because the collar mechanics make Netflix’s price path relevant to the ultimate stock component.
3) Paramount’s tender timeline is a real catalyst — and it has a date
Paramount’s offer is scheduled to expire Jan. 8, 2026 (5 p.m. ET) unless extended.
That means there is a steady drumbeat of potential filings and communications between now and then, including:
- amendments to tender documents,
- additional shareholder letters,
- and strategic pressure tactics (or sweeteners).
4) New SEC filings can hit at any time — and they matter more than rumors
WBD’s internal communication to employees (filed as an exhibit) emphasized that WBD still has a signed transaction agreement with Netflix and that the regulatory review process has already begun.
Before Friday’s open, the highest-signal items to watch are:
- new or amended tender documents,
- additional exhibits explaining financing,
- and any progress toward the proxy/prospectus steps described in the Netflix press release.
5) Options positioning could amplify Friday volatility — even if IV is low
The options market is currently implying a relatively modest day move (about $0.50). [6]
But if fresh headlines hit, implied volatility can reprice quickly — and in deal situations, that repricing can be sharp.
Bottom line: WBD remains headline-driven — and tonight’s tape is “calm, not settled”
WBD ended Dec. 18 with a quiet after-hours tape, but that doesn’t mean the story is quiet.
Today introduced a fresh angle — outside interest in CNN and the cable networks — that directly intersects with the single biggest unresolved valuation question in this saga: what is Discovery Global worth, and who wants it?
Meanwhile, the stock closing just under Netflix’s $27.75 headline value is a market signal that investors are still weighing:
- deal timing and regulatory risk,
- the practical value (and leverage) of the spun networks business,
- and the probability of Paramount materially changing the playing field before its tender window runs down.
References
1. news.bloomberglaw.com, 2. news.bloomberglaw.com, 3. news.bloomberglaw.com, 4. www.tipranks.com, 5. news.bloomberglaw.com, 6. www.tipranks.com
