Warner Bros. Discovery stock jumps on progress in $110 billion Paramount deal

Warner Bros. Discovery stock (ISIN US9344231041) saw a sharp move higher in after-hours trading on September 18, 2026, with the shares gaining between 8.3 and 8.6 percent after reports that Paramount Skydance could reach a settlement with US states over its proposed USD 110 billion takeover of Warner Bros. Discovery as soon as this weekend, according to Bloomberg on September 18, 2026.

Merger settlement talks drive the stock

The immediate catalyst for Warner Bros. Discovery stock was fresh reporting that Paramount Skydance and US state attorneys general are in advanced talks to settle litigation surrounding the planned USD 110 billion acquisition of Warner Bros. Discovery, with a potential agreement as soon as this weekend, as highlighted by CNBC on September 19, 2026.

According to Indiantelevision on September 19, 2026, the potential settlement could include independent monitoring of CNN, the news network owned by Warner Bros. Discovery, as part of the terms agreed with regulators.

In reaction to the settlement headlines, Warner Bros. Discovery shares rose about 8.4 percent in after-hours trading on September 18, 2026 compared with the regular-session close, while Paramount Skydance gained nearly 7 percent, as reported by Moneycontrol on September 19, 2026.

Price level and valuation metrics

Before the after-hours spike, Warner Bros. Discovery stock had closed the most recent regular trading day at around USD 27.81 on its primary listing in New York, down 1.52 percent from the previous session, according to Zacks on September 18, 2026.

A separate overview from MarketBeat on September 18, 2026 pointed to an intraday trading level near USD 27.99, implying that the roughly 8.4 percent after-hours move lifted the shares toward the low-USD 30 range, taking them clearly above the year-to-date starting level of USD 28.82 and reversing a prior decline of 2.9 percent since the beginning of 2026.

Price-based valuation metrics also reflect the sharp move. On September 18, 2026, Warner Bros. Discovery traded at a Price-to-Sales ratio of about 1.99, noticeably above its historical median of 1.64, which suggests that the market is pricing in stronger future growth despite current unprofitability, according to GuruFocus on September 19, 2026.

Recent earnings and fundamental trends

Beyond the merger story, Warner Bros. Discovery’s latest reported quarter has given investors more concrete fundamentals to assess. The company announced quarterly earnings on August 6, 2026, reporting earnings per share of USD 0.06, compared with a consensus expectation of negative USD 0.14, which means the company beat forecasts by USD 0.20 per share, according to MarketBeat on September 18, 2026.

In the same quarter, Warner Bros. Discovery’s revenue declined 11.2 percent year over year, underscoring that the earnings beat was driven more by cost measures and mix than by top-line growth, as detailed by MarketBeat on September 18, 2026.

Analyst consensus for the upcoming quarter remains cautious. According to Yahoo Finance on September 18, 2026, Warner Bros. Discovery is projected to report earnings of USD 0.02 per share in its next quarter, a 133.33 percent increase over the same period a year earlier, with revenue expected at USD 8.84 billion, down 2.28 percent from the prior-year quarter.

For the full year 2026, the Zacks Consensus estimates currently point to earnings of negative USD 1.08 per share and revenue of USD 36.26 billion, representing year-over-year changes of negative 472.41 percent and negative 2.77 percent respectively, as noted by Zacks on September 18, 2026.

Analyst views and risk factors

From a rating perspective, Warner Bros. Discovery currently carries a Zacks Rank of #3, corresponding to a Hold stance, reflecting mixed signals between momentum and fundamental trends, according to Zacks on September 18, 2026.

Valuation tools paint a more cautious picture. A detailed analysis by GuruFocus on September 19, 2026 estimates Warner Bros. Discovery’s intrinsic value at about USD 9.30 per share using its proprietary GF Value metric, compared with a current market price close to USD 27.93, implying the stock is roughly 200 percent above that fair value estimate.

The same analysis highlights that Warner Bros. Discovery’s GF Score is 56 out of 100, indicating mixed fundamentals: strong momentum but weaker growth and valuation metrics, with no insider buying and around USD 406.3 million of insider selling over the past twelve months, which may reinforce a perception of elevated risk, as outlined by GuruFocus on September 18, 2026.

Regulatory uncertainty around the USD 110 billion Paramount Skydance takeover remains a key risk factor. While reports from Variety on September 19, 2026 suggest advanced discussions between Paramount and California’s attorney general regarding settlement of the antitrust suit, investors still face uncertainty over the final structure of any deal and its impact on Warner Bros. Discovery’s strategic direction and balance sheet.

Stock level and upcoming dates

As of the latest regular session referenced on September 18, 2026, Warner Bros. Discovery stock traded near USD 27.81 on its primary exchange in New York, with an after-hours move of more than 8 percent pushing the shares toward the USD 30 mark, while the company’s market capitalization stood around USD 69.8 billion at a closing price of USD 27.80, according to Interactive Investor on September 19, 2026.

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