Warner Brothers Discovery stands to gain from a potential acquisition by Netflix , according to Wells Fargo. The bank stood by its equal weight rating on the entertainment and media stock, but lifted its price target by about 8%, to $14 per share from $13. The updated forecast implies upside of nearly 12% from Warner Brothers’ Wednesday close. Shares of Warner Brothers have jumped 19% this year. The stock was trading 4% higher early Thursday. WBD YTD mountain WBD YTD chart As a catalyst, Wells Fargo analysts led by Steven Cahall see potential buyers interested in Warner Brothers Discovery’s streaming and studios business after its separation from the networks side of the company. Cahall stressed that entertainment studios have tended to consolidate over time and is likely to continue. “This will be the only large [intellectual property] asset for sale at a time when most studios/streamers have big aspirations,” Cahall wrote. While potential buyers include Amazon , Apple , Comcast , Paramount Skydance and Sony , Cahall noted that Netflix is the “most compelling” buyer. Despite not having relied on acquisitions in the past, Netflix remains the most likely candidate given idiosyncratic difficulties faced by other potential buyers. “We think NFLX is the most compelling buyer, and their investors would support a deal,” the analyst continued. “While NFLX has historically not been acquisitive, [streaming and studios’] $12bn in annual content spend + library + 100+ acre studio lot offers a lot. It kickstarts a theatrical IP strategy, quickly scales video games and most importantly provides premium content to members.” The analyst estimated the value of Warner Brothers’ streaming and studios segment at around $65 billion, which could translate into an M & A valuation of more than $21 per share. Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant will become the new parent company of CNBC under a proposed spinoff. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
