Warner Bros. Discovery, Inc. (NASDAQ: WBD) — the company behind HBO, Max, CNN, DC, and a deep film-and-TV library — ended Monday’s regular session with a sharp gain as Wall Street digested fresh twists in what has become one of Hollywood’s most consequential takeover battles.
WBD closed Monday, December 22, 2025 at $28.75, up 3.53%, after trading between $28.47 and $28.98, with about 45.66 million shares changing hands.
In extended trading, multiple quote services showed WBD hovering just under $29 — around $28.78–$28.80 — suggesting investors largely held onto the day’s rally after the closing bell.
The reason for the move is simple: the bidding war is back in the spotlight, and the market is trying to price the gap between a higher hostile cash bid and a lower but board-supported transaction.
Below is what happened after the bell on 22.12.2025, and the key items investors and traders should watch before the U.S. market opens Tuesday, December 23, 2025.
Why WBD jumped: Paramount amends its tender offer — and WBD confirms receipt after the bell
After U.S. markets closed, Warner Bros. Discovery issued a statement confirming it has received an amended, unsolicited tender offer from Paramount Skydance to acquire all outstanding WBD shares. The company said its board will review and consider the revised offer consistent with its fiduciary duties and in accordance with the terms of WBD’s agreement with Netflix.
Crucially for Tuesday’s setup, WBD also delivered two messages that can shape near-term trading behavior:
- “The Board is not modifying its recommendation” in support of the Netflix transaction (at least not yet). PR Newswire
- Stockholders were told not to take any action at this time regarding the amended tender offer.
WBD also disclosed its advisors on the review, including Allen & Company, J.P. Morgan, and Evercore as financial advisors and Wachtell Lipton and Debevoise & Plimpton as legal counsel.
That post-close confirmation matters because it frames Tuesday as a process-and-paperwork day: investors will be watching for the next formal steps (SEC filings, board communications, bidder responses) rather than expecting an immediate “yes/no” overnight.
The key catalyst: Larry Ellison’s $40.4 billion personal guarantee
The single biggest “new” ingredient in Monday’s news flow is that Oracle co-founder Larry Ellison agreed to provide a personal guarantee of $40.4 billion in equity financing to back Paramount Skydance’s all-cash bid for WBD. Reuters+1
Reuters reported that the guarantee is meant to address WBD’s stated concerns about the reliability and completeness of financing support for Paramount’s earlier approach — concerns that helped push WBD toward Netflix’s rival offer.
Paramount’s amended terms, as described publicly Monday, do not increase the headline price: the offer remains $30 per share in cash.
Netflix vs. Paramount: the two competing deal paths the market is pricing
At Monday’s close, WBD stock sat between the two deal “reference points” investors keep anchoring to:
- Paramount Skydance: $30.00 per share, all cash (for the whole company).
- Netflix: $23.25 cash + about $4.50 in Netflix stock per WBD share (roughly $27.75 total, focused on WBD’s studios + streaming assets).
This helps explain the after-hours equilibrium near $29: the market is effectively balancing (1) the possibility of a higher $30 cash outcome, (2) the board’s current preference for Netflix, and (3) the reality that timelines, regulatory risk, and deal conditions can push final outcomes around.
A quick “spread” check going into Tuesday
Using Monday’s $28.75 close, the stock traded about $1.25 below Paramount’s $30 cash offer — roughly a 4.3% gap — which can be viewed as a headline-risk discount for uncertainty, timing, and completion probability.
Financing and deal certainty: both bidders are trying to remove “funding doubt”
A major reason M&A-driven stocks move in after-hours is not the offer price — it’s whether the market believes the money is real and the close is plausible.
Netflix updates its financing: refinancing part of a $59 billion bridge
Reuters reported Monday that Netflix refinanced part of its $59 billion bridge loan tied to its potential acquisition of WBD’s film/TV studios and streaming assets, including a $5 billion revolving credit facility and two $10 billion delayed-draw term loans, leaving about $34 billion of the bridge to be syndicated.
In practical terms, that headline is aimed at one thing: reinforcing that Netflix is treating this as a “must-close” transaction and actively lining up longer-term funding.
Paramount adds the Ellison guarantee (and matches the breakup-fee posture)
The amended Paramount package includes Ellison’s $40.4 billion equity guarantee, and Reuters reported that the amendment was intended to reduce doubts that previously weighed on the proposal.
Separately, deal comparison reporting circulating Monday indicated both packages now reference $5.8 billion breakup-fee figures in their structures (with WBD also facing a fee in the Netflix agreement if it walks).
What analysts and deal-watchers said today: why this may not be “settled” for months
Reuters’ “Instant View” roundup Monday highlighted a theme that matters for Tuesday’s open: even with improved financing signals, the dispute is far from over, and the timetable stretches well beyond the next session. Reuters
Commentary cited by Reuters suggested:
- The Ellison guarantee may not automatically change the current board-backed path (Netflix) — at least immediately.
- Others argued that if a higher, credible offer is truly “superior,” pressure on the board could intensify. Reuters
- Several observers emphasized the likelihood of more twists, and that the process could run deep into 2026 for final approvals and closing mechanics.
This matters for price action: when timelines lengthen, arbitrage spreads can widen, and daily moves become more sensitive to incremental headlines.
Why WBD is the prize: assets, subscribers, and what changes depending on the buyer
For readers coming in cold (and for Google Discover audiences), a key part of any WBD stock story is understanding what investors think they’re actually buying.
A Reuters “factbox” on Monday described WBD as a media company with major franchises (e.g., DC and “Harry Potter” era assets) and noted that WBD’s streaming unit (Max + discovery+) has been adding subscribers, reaching 128 million global subscribers after adding 2.3 million net subscribers in Q3. Investing.com
The same Reuters reporting also pointed to WBD’s fiscal 2024 revenue of about $39.32 billion (down about 5% year over year), with studio revenue cited at $11.61 billion.
Why it matters: the structure of the winning deal changes what remains public, what gets spun off, and what “WBD” means as a ticker during the transition.
- Under the Netflix path, the transaction centers on WBD’s film/TV studios and streaming assets, and Reuters reported the deal is expected to close after WBD spins off its Global Networks unit in Q3 2026.
- Under the Paramount path, the offer is to acquire the whole company, including legacy networks — a very different regulatory and integration profile.
The political and regulatory wildcard: comments that could move the stock pre-market
Deal traders aren’t just pricing money and synergies — they’re pricing regulators.
Deal-comparison reporting published Monday included references to U.S. President Donald Trump’s public comments regarding the Netflix/WBD combination and other related remarks tied to Paramount/CBS dynamics.
Separately, Reuters reported Trump has said he would have a say in whether a Netflix–Warner Bros combination should go forward.
Whether or not any new statement emerges overnight, this is the kind of headline category that can shift pre-market positioning quickly—especially when the stock is trading on deal odds rather than quarterly earnings.
WBD stock forecasts: what “normal” Wall Street targets look like — and why they matter less right now
One trap for investors heading into Tuesday is assuming traditional 12‑month price targets can “call” the next move.
As of late Monday/early Tuesday quote pages, Investing.com displayed an average 12‑month price target around $26.77 (high estimate $35, low $20) with an overall “Buy” rating based on the analysts it tracks. Investing.com
Two caveats for Tuesday’s open:
- Targets can lag fast-moving M&A situations.
- When an acquisition bid is active, the stock often trades around deal value minus a risk discount, not around fundamentals.
The more actionable “forecast” for Tuesday is therefore scenario-based: What headline changes the probability-weighted outcome?
What to watch before the stock market opens Tuesday, Dec. 23, 2025
Here’s the practical checklist for WBD heading into the next session:
1) Any overnight SEC filings or new board communications
WBD has now publicly acknowledged receipt of the amended offer and said it will review it.
The next signals investors look for are procedural: updated tender materials, recommendation statements, timelines, or clarifications.
2) Whether Paramount raises (or reframes) the economics
Right now, Paramount’s amendment appears centered on financing credibility (Ellison guarantee) rather than a higher price.
If the stock starts pressing toward $30, traders may interpret it as rising odds of either a sweetened bid or a path to compel engagement.
3) Netflix’s next move: messaging + market reaction to financing headlines
Netflix has been actively firming up funding structure around the proposed transaction.
Any statement, leak, or additional filing that clarifies timing, structure, or regulatory strategy could shift the spread.
4) The “deal math” level to watch: $27.75 vs. $30
WBD trading above the implied Netflix package value (~$27.75) but below Paramount’s $30 cash offer is the market’s way of saying: “higher bid possible, but not guaranteed.” Investing.com+1
5) After-hours liquidity and gap risk
Extended trading prints near $28.78–$28.80 don’t guarantee that’s where the stock opens; thin liquidity can exaggerate moves on even minor headlines.
6) Any new regulatory or political commentary
As noted, this deal story already carries a political/regulatory dimension. Fresh headlines in that lane can drive pre-market gaps quickly.
Bottom line for WBD stock heading into Tuesday’s open
As of after-hours trading on Dec. 22, 2025, WBD is behaving like a classic deal stock: anchored between two reference prices, sensitive to headlines, and trading less on quarterly fundamentals than on probability and timing.
The most important takeaway before Tuesday’s open: WBD’s board has not changed its recommendation in favor of the Netflix deal — yet — but it has formally acknowledged the amended Paramount offer and will review it.
For traders and investors, Tuesday’s session is likely to be driven by:
- process updates (filings, statements, recommendations),
- financing confidence (and any new details),
- and regulatory tone (especially anything new overnight).
