A Stock Option Transaction for the Warner Bros. Lottery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy PSKY?
Source: Barron's
- Bidding War Impact: The ongoing bidding war for Warner Bros. Discovery is causing significant fluctuations in its stock prices.
- Investment Opportunities: Investors are exploring various strategies to capitalize on the volatility created by the bidding process.
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Analyst Views on PSKY
Wall Street analysts forecast PSKY stock price to rise
15 Analyst Rating
1 Buy
7 Hold
7 Sell
Moderate Sell
Current: 10.250
Low
8.00
Averages
14.08
High
19.00
Current: 10.250
Low
8.00
Averages
14.08
High
19.00
About PSKY
Paramount Skydance Corp, formerly New Pluto Global, Inc., is a holding company. It operates through its wholly owned subsidiaries, Paramount Global (Paramount) and Skydance Media, LLC (Skydance). Paramount is a global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Its consumer brands include CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. In addition to offering streaming services and digital video products, it also provides production, distribution and advertising solutions. Skydance is a diversified media company focused on creating event-level entertainment for global audiences. Skydance develops, finances and produces live-action and animated films, television shows, sports content and interactive games worldwide. Skydance has also produced 31 seasons of live-action and animated television content across 16 series and supplies content across a range of platforms.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- IP Protection Commitment: ByteDance has pledged to implement measures to curb unauthorized use of intellectual property on its AI video generator Seedance 2.0, a response to legal threats from U.S. companies like Disney, highlighting the company's commitment to IP issues.
- Seedance 2.0 Popularity: Since its launch last week, Seedance 2.0 has gained significant traction, with a viral video featuring Tom Cruise and Brad Pitt, indicating the AI model's potential and impact in the Chinese market.
- Disney's Legal Threat: Disney has issued a cease-and-desist letter to ByteDance, accusing the company of using Disney characters to train Seedance 2.0 without authorization, underscoring the growing tensions between content creators and AI developers over intellectual property rights.
- Increase in Copyright Lawsuits: Recently, authors like John Carreyrou have filed lawsuits against major AI firms for using copyrighted books without permission, reflecting a growing concern within the industry regarding the protection of intellectual property.
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- Copyright Protection Measures: ByteDance has pledged to enhance copyright safeguards for its newly launched AI video-making tool, Seedance 2.0, in response to copyright theft complaints from Hollywood, indicating the company's commitment to intellectual property rights.
- Strong Industry Backlash: The Motion Picture Association (MPA) expressed severe dissatisfaction with Seedance 2.0, claiming it engaged in unauthorized use of U.S. copyrighted works on a massive scale in just one day, demanding ByteDance to cease infringing activities, highlighting the industry's heightened focus on copyright protection.
- Escalating Legal Actions: Disney has issued a cease-and-desist letter to ByteDance, accusing the company of using its intellectual property without permission in Seedance, signaling an increasing regulatory pressure from the entertainment industry on AI tools.
- Competitor Countermeasures: Paramount Skydance has also sent a similar cease-and-desist letter to ByteDance, demonstrating the determination and actions of traditional entertainment companies to protect their intellectual property amidst the rapid development of AI technology.
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- Inflation Data Decline: The U.S. consumer price index rose 2.4% year-on-year in January, down from 2.7% in December, with core CPI at 2.5%, the lowest since April 2021, suggesting that if this trend continues, it could pave the way for lower interest rates and positively impact markets.
- Japan's Economic Recovery: Japan's GDP grew by 0.1% in the fourth quarter, missing the expected 0.4% but reversing a 0.7% contraction in the previous quarter, indicating potential for economic recovery and avoiding a technical recession.
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- Escalating Legal Threats: Hollywood studios have accused ByteDance's Seedance 2.0 of widespread unauthorized content use, intensifying copyright disputes that could negatively impact ByteDance's reputation and business in the U.S.
- Commitment to IP Protection: ByteDance has pledged to strengthen safeguards for Seedance 2.0 in response to strong opposition from Hollywood groups, demonstrating the company's commitment to intellectual property rights and legal compliance.
- Strong Industry Backlash: The Motion Picture Association (MPA) expressed severe dissatisfaction with ByteDance's actions, claiming massive copyright infringement within a single day, which could lead to legal repercussions and affect creators' rights.
- Shifting Competitive Landscape: While facing legal challenges, ByteDance continues to promote Seedance 2.0 in the market, potentially altering its competitive dynamics with other AI companies, particularly those like OpenAI that have signed licensing agreements.
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- Sale Talks Reopened: Warner Bros. Discovery is reportedly considering reopening sale discussions with rival Paramount Skydance after receiving the latter's latest amended offer, which may trigger a second bidding war with Netflix.
- Board Deliberations: The Warner Bros. board is evaluating whether Paramount could provide a pathway to a superior deal, although no decision has been made yet, and a binding agreement with Netflix remains in place.
- Offer Details: Paramount Skydance recently enhanced its takeover bid for Warner Bros. by adding a “ticking fee” of up to $650 million, payable quarterly after 2026 if regulatory approvals for the $108 billion deal are delayed.
- Market Implications: This development could significantly impact Warner Bros.' market strategy, particularly in the context of its agreement with Netflix, demonstrating the company's flexibility and responsiveness in the face of competition.
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- Proposal Revision: Paramount Skydance has submitted a revised offer of $30 per share, aiming to surpass Warner Bros.'s existing agreement with Netflix at $27.75 per share, indicating a sustained interest in acquiring Warner Bros.
- Termination Fee Commitment: The new proposal includes Paramount covering the approximately $2.8 billion termination fee Warner Bros. would owe Netflix if the agreement is terminated, which reduces Warner's financial risk and may prompt a reconsideration of the deal.
- Shareholder Compensation Assurance: Paramount also promises to compensate shareholders if the deal fails to close by December 31, enhancing shareholder confidence in the transaction and increasing its attractiveness.
- Market Reaction: Warner Bros. shares have declined 1.76% over the past month, while both Netflix and Paramount shares have dropped over 12%, reflecting a cautious market sentiment regarding the deal's prospects.
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