Warner Bros. Discovery Stock Surges as Investment Manager Accumulates Shares and Buyout Rumors Swirl

Pacer Advisors, Inc. disclosed a sizable purchase of Warner Bros. Discovery (NASDAQ:WBD) shares, adding 22,308,046 shares in Q3 2025 for a transaction value of $303,905,299, according to its October 15, 2025, SEC filing.

What Happened

Pacer Advisors, Inc. reported in a quarterly SEC filing dated October 15, 2025, that it acquired 22,308,046 additional shares of Warner Bros. Discovery during the quarter. The estimated value of these share purchases, based on the average unadjusted closing price for the quarter, was approximately $303.91 million. The position now totals 22,788,847 shares, worth $445.07 million.

What Else to Know

This buy brings Warner Bros. Discovery to 1.12% of Pacer Advisors’ reportable U.S. equity assets as of September 30, 2025.

Top five holdings after the filing:

• NVDA: $569.61 million (1.65% of AUM) as of September 30, 2025
• AMAT: $499.48 million (1.44% of AUM) as of September 30, 2025
• XOM: $489.87 million (1.42% of AUM) as of September 30, 2025
• NEM: $483.92 million (1.4% of AUM) as of September 30, 2025
• MO: $467.63 million (1.35% of AUM) as of September 30, 2025

As of October 14, 2025, shares of Warner Bros. Discovery were priced at $17.98, up 138.46% over the year ending October 14, 2025; shares have outperformed the S&P 500 by 124.84 percentage points during the same period.

Company Overview

Company Snapshot

Warner Bros. Discovery, Inc. is a leading global media and entertainment company with a diversified portfolio spanning film, television, and streaming. The company leverages iconic brands and franchises to deliver content across multiple platforms, targeting both traditional and digital audiences.

The company produces and distributes feature films, television programs, and streaming content across brands such as HBO, Warner Bros. DC, CNN, and Discovery Channel. It generates revenue through theatrical releases, content licensing, broadcast and cable networks, and direct-to-consumer streaming subscriptions.

Warner Bros. Discovery serves global audiences, including individual consumers, cable and satellite providers, and digital streaming subscribers.

Foolish take

Pacer Advisors recent purchase of more than 22 million shares of Warner Bros. Discovery stock looks like a particularly well-timed investment. The transaction, worth roughly $300 million, comes as rumors swirl that Warner Bros. has drawn interest from a deep-pocketed admirer, David Ellison.

David Ellison, whose father is Larry Ellison, founder of Oracle, and second-richest man on the planet, has already completed the purchase of Paramount Skydance, another sprawling media company with iconic entertainment brands including CBS, MTV, Comedy Central, Paramount Studios, and Showtime.

Warner Bros. stock has soared more than 50% since a report emerged that Ellison has expressed interest in merging Paramount and Warner Bros. This comes as Warner Bros. is finalizing plans to split itself into two companies: One with its iconic movie studio assets and its streaming service, and another with its legacy cable channels (including CNN, TNT, and Discovery). The point of the split being to separate the company's high-growth streaming and studio business from its struggling television network businesses.

For retail investors, Warner Bros. stock might be worth some consideration, with a bidding war being a real possibility. It's conceivable that other suitors may come forward to bid for the company, which could push the company's stock price even higher. That said, investors must also exercise some caution. There's no guarantee that Warner Bros. will get any takeover offer, and if one fails to materialize, shares could very quickly retreat by 30% or more.

Glossary

13F AUM: The total market value of U.S. equity securities reported by an institutional investment manager in quarterly SEC Form 13F filings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a financial institution or fund manager.
Transaction value: The total dollar amount spent or received in a specific investment trade or purchase.
Post-trade stake: The total number of shares or ownership percentage held after a transaction is completed.
Top five holdings: The five largest investments in a fund or portfolio, ranked by market value.
Outperforming: Achieving a higher return than a specified benchmark or index over a given period.
Direct-to-consumer streaming: Delivering video content directly to viewers via the internet, bypassing traditional cable or satellite providers.
Content licensing: Granting rights to other companies to use or distribute media content for a fee.
TTM: The 12-month period ending with the most recent quarterly report.

Jake Lerch has positions in Altria Group, ExxonMobil, and Nvidia. The Motley Fool has positions in and recommends Applied Materials, Nvidia, Oracle, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.