Paramount Skydance (PSKY) Climbs 20.8% as Netflix Backs Out of Warner Bros Bid

We recently published 10 Stocks Ending February With a Bang. Paramount Skydance Corp. (NASDAQ:PSKY) was one of the best performers on Friday.

Paramount Skydance soared by 20.84 percent on Friday to finish at $13.51 apiece, after its rival firm, Netflix, surrendered from their billion-dollar bidding war for the acquisition of Warner Bros Discovery.

In a statement, Paramount Skydance Corp. (NASDAQ:PSKY) said that it officially inked a definitive agreement with Warner Bros for the acquisition of the latter for $110 billion.

Under the agreement, the David Ellison-led entertainment giant would acquire Warner Bros’ shares at a price of $31 apiece, topping Netflix’s earlier offer of $27.75. Both firms’ board of directors have already approved the transaction, which is expected to close in the third quarter of the year, subject to other closing conditions.

In the event that the transaction is not closed by September 30, Paramount Skydance Corp. (NASDAQ:PSKY) would pay each WBD shareholder a $0.25 per share of what it called a “ticking fee” for each quarter until the successful closing of the transaction.

On the same day, Netflix said that it would no longer raise its bid, saying that the deal “is no longer financially attractive.”

“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the US. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” it noted.

While we acknowledge the potential of PSKY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.