Warner Bros. (WBD) Getting Sued is a Waste of Time, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks on Jim Cramer talked about.

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is at the center of attention once again due to being at the center of takeover attention from multiple media giants. The bidding war started last year after Paramount Skydance made a bid for the firm. Paramount was later joined by Netflix and Comcast. Cramer and his co-host David Faber have discussed the deal on several occasions since it was announced. More recently, Cramer asserted that if Warner Bros. Discovery, Inc. (NASDAQ:WBD) was offered a higher offer price, then it might be more open to Paramount’s advances. However, Paramount seems to have lost patience, as after increasing the bid offer to $22.50 from an initial $19, the firm sued Warner Bros. and demanded that the latter share more details about the bid from Netflix. In this appearance, the CNBC TV host insisted that the lawsuit was the incorrect move:

“Yeah David, it’s curious, when I listened to your [inaudible] interviews with the chairman, we know where the CEO is, David Zaslav. This is not the way to get the job done. It’s kind of a big waste of time, and a lot of attorney’s fees for Paramount. David, isn’t it ironic that there is a price that you could pay, and Netflix has to lose, and yet they won’t pay it?”

Contrarius Global Equity Fund also discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its third quarter 2025 investor letter:

“Importantly, while there has been some rotation within the Fund, certain of the Fund’s holdings that have rerated are still regarded as extremely attractive. Our top three positions at 30 September—Tesla, Warner Bros. Discovery, Inc. (NASDAQ:WBD) and Paramount Skydance (Paramount)—have been amongst our largest holdings for some time. All three have been large contributors to performance over the past year. while Warner Bros. Discovery and Paramount have also performed well of late, they continue to trade well below our estimate of their intrinsic value. Their more recent outperformance should be seen in the context of their underperformance over prior years. While meaningful outperformers over the last year, both Warner Bros. Discovery and Paramount have been negative contributors over five years. We believe that there is substantially more value in both. Our Q2 2023 Quarterly Commentary discussed the investment case for both of these companies. In addition, while not necessary for our investment case, we believe that there are meaningful catalysts in the short to medium term from expected consolidation in the US media sector.”