Paramount Skydance rises after Morgan Stanley double upgrade

Warner Bros Discovery

01/05/2026 13:37

** Media giant Paramount Skydance's shares PSKY.O rise 3.9% to $10.64 premarket

** Morgan Stanley upgrades to "overweight" from "underweight"; raises target price to $14 from $11

** New PT represents 36.7% upside from stock's last close

** Brokerage calls proposed acquisition of Warner Bros Discovery WBD.O "a big, bold and game-changing move" that  would position the combined entity with "some of the best IP in the world (GoT, LoR, Potter, DC)" along with a tech-forward approach

** Says the combined subscriber base, ex-overlapping subs, would rank number 4 behind Netflix, Amazon, Disney+

** Despite calling it as their "riskiest and most out-of-consensus call," Morgan Stanley sees favorable risk/reward skew with >80% upside to $20 bull case versus ~20-25% downside in a no-deal scenario

** As of last close, stock down about 23.6% YTD

 (Reporting by Ragini Mathur in Bengaluru)

 ((Ragini.Mathur@thomsonreuters.com;))