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Paul Tudor Jones recently made a bold call on Warner Bros. Discovery (WBD). His firm, Tudor Investment, recently initiated a brand-new position of 7.06 million WBD shares, valued at roughly $193.7 million, according to a recent regulatory filing. That is a conviction bet — and given everything happening inside the company right now, it may be one of the most interesting media investments of 2026.
WBD stock has been a turnaround story in progress. Streaming losses have flipped to profits, subscriber growth is accelerating, and content quality is at a multi-decade high. Moreover, a pending acquisition by Paramount Skydance (PSKY) adds a potential near-term catalyst that most investors are not yet pricing in correctly.
I believe WBD stock is worth watching closely right now. Tudor's entry only reinforces that view.
Warner Bros. Discovery's Streaming Turnaround Is Real
The numbers behind HBO Max's transformation are striking.
When Warner Bros. Discovery first came together in 2022, its streaming division was burning through more than $2 billion a year. The streaming business generated $1.4 billion in profit in 2025, a swing of roughly $3.4 billion.
Subscriber growth has kept pace with profitability. The company started with around 95 million subscribers and has since added nearly 50 million more, blowing past its own guidance of 140 million by the end of Q1 2026. Management now expects to finish 2026 with more than 150 million global subscribers.
Driving that growth is the content that audiences are watching. "The Pitt" averaged more than 15 million viewers per episode in its second season. "A Knight of the Seven Kingdoms" drew 36 million viewers per episode on its debut, making it one of the most-watched new series in HBO's history. HBO has never had more active shows simultaneously averaging over 20 million global viewers than it does right now.
The upcoming content slate makes that look conservative. “Euphoria” is back, and a new season of “House of the Dragon” is in the cards. The new “Harry Potter” television series is also set to launch on Christmas Day, which CEO J.B. Perrette described as potentially "the biggest streaming event certainly for us ever."
The Paramount Deal Adds a New Layer of Upside
Beyond streaming momentum, WBD shareholders recently voted to approve the Paramount Skydance acquisition at $31 per share in cash. That deal gives shareholders a clean exit at a defined price while potentially unlocking significant value for the combined entity.
Perrette put it plainly on the earnings call. The combined platform — built on the Warner Bros. Discovery's global streaming infrastructure and Paramount's content library — could create a more competitive challenger to Netflix (NFLX) and Disney (DIS). The merger will lead to more content and bundling options, which should result in lower churn and higher ad sales.
Tudor entered WBD stock after the company's subscriber and profitability inflection but before the acquisition deal has closed. This is a classic setup for a macro investor who sees near-term catalysts that the broader market is slow to appreciate.
Is WBD Stock a Good Buy?
Investors should note that Warner Bros. Discovery's network revenue is falling while the linear television business faces long-term structural pressure. Moreover, integration risk around any large merger is real.
However, the streaming business is no longer a drag. It is a growth engine with improving margins, backed by a content machine. The studio just won 11 Oscars, and the subscriber base is expanding globally. Finally, the $31-per-share acquisition price creates a potential floor for the stock.
Out of the 23 analysts covering WBD stock, two recommend a “Strong Buy,” one recommends a “Moderate Buy,” 17 recommend a “Hold” rating, and three recommend a “Strong Sell” rating. The average price target is $29.11, which implies 7% potential upside from current levels.
