$Warner Bros. Discovery(WBD)$ $Walt Disney(DIS)$ $Paramount Skydance Corp(PSKY)$ ๐ฌ๐ก $WBD Breakout Targeting $21 Resistance ๐ก๐ฌ
I'm seeing Warner Bros. Discovery coil into a high-probability breakout structure, backed by both technical compression and fundamental catalysts. Support is firm at $18.60 and $17.90, while resistance zones remain at $20.20 and $21. A clean breakout through $21 would mark a decisive inflection.
๐ Technical Setup and Breakout Levels
History shows that prior breakouts from these consolidation bands have delivered 20โ30% measured moves, and the current probability-weighted path suggests a base case of $21.50 in the near term, with extended upside scenarios toward the mid-$20s if takeover speculation accelerates.
๐ฐ Analyst Upgrades and Restructuring
CFRA just raised their price target from $14 to $21 on a forward TEV/EBITDA multiple of 9.4x, citing both restructuring optionality and potential acquirer interest. Management is planning a split into Global Networks and Streaming Studios by FY26, with HBO Max launching in Europe around the same timeframe.
โ๏ธ Debt Buyback Controversy
$WBD is under fire from bondholder group The Credit Roundtable, which argues Warner Bros. and its bankers gave creditors just 5 days to decide on a $36B debt buyback tied to the split plan, stating these tactics undermined investors and ran afoul of SEC tender rules.
๐ฐ Takeover Premium and Valuation
CEO David Zaslav has openly floated the idea of a bidding war, pointing toward a potential $30โ$40 takeover range that would significantly re-rate the stock. Analyst consensus currently projects $0.35 EPS for FY25 before dropping to $0.10 in FY26 as restructuring costs peak, reinforcing why the market is attaching a takeover premium.
๐ Strategic Media Landscape
$WBD sits alongside Comcast, Disney, and Paramount as one of the โbig fourโ media giants shaping global streaming and content distribution. In this landscape, execution of restructuring, partnerships, and any acquisition scenario could dramatically redefine market share and valuations.
The setup is one of focus and nimbleness. Execution risk remains, but the asymmetry of outcomes favors a sustained momentum bid into resistance reclaim. Should $21 break, probability-weighted upside scenarios point to further acceleration.
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Great article, would you like to share it?
I guess that is not a problem for WBD either.
Great article, would you like to share it?