Warner Bros Shareholders Are Getting More Than Just Acquisition Drama

Warner Bros (NASDAQ:WBD) has been in the spotlight after Netflix announced on December 5 that it would acquire the company for $72 million in equity value. What followed has brought even more drama to the story. First came reports that the Justice Department might intervene in the transaction. Then Paramount entered the scene with a hostile takeover bid worth $108 millions. 

Despite all this uncertainty, the stock has been rallying sharply. To understand why the strength is coming in now and what might lie ahead, let's look at Warner Bros through the lens of its Adhishthana cycle.

Analysing Warner Bros' Cakra Pattern 

Under the Adhishthana Principles, stocks often form what is known as the Cakra pattern between Phases 4 to 8. This structure, usually seen as a channel with an arc, carries bullish implications. Once this pattern completes, Phase 9 typically triggers a breakout that marks the start of the Himalayan Formation, a powerful rally that moves through an ascent, peak, and eventual descent.

On the weekly chart, Warner Bros entered Phase 4 in January 2022. Since then, the stock steadily built its Cakra structure through Phase 8, which ended in May 2025. As expected, when the stock transitioned into Phase 9 in late May, it broke out strongly and launched into the start of its ascent move.

Since the Phase 9 breakout, Warner Bros has already rallied by roughly 115%. What is important to note here is that the stock turned bullish well before the current headlines. This illustrates the advantage of applying the Adhishthana framework, which often highlights structural shifts long before mainstream sentiment catches up.

Phase 9 on the weekly chart ends around mid-January 2026, after which the stock transitions into Phase 10. As referenced in my book:

“The 18th interval is expected to be the level of peak formation; if not, then the 23rd interval. If this phase concludes without forming the peak, it is anticipated to occur in the following phases.” – Adhishthana: The Principles That Govern Wealth, Time & Tragedy

Translating this into the current cycle, a potential peak formation window appears between May and June next year. 

Investor Outlook

There is no clarity yet on whether Netflix or Paramount will ultimately take over Warner Bros, and the regulatory picture remains uncertain as well. What is clear, however, is that the stock is benefiting from the competitive tension and is well aligned with its structural ascent phase.

Shareholders of Warner Bros are getting more than just acquisition drama; the stock is delivering its own action-packed momentum. Those who hold the stock should continue to do so, as the ascent phase remains in motion and a peak formation window lies ahead in the next cycle phase.

With Netflix and Paramount practically wrestling over who gets to paint their logo on Warner Bros’ water tower, shareholders are getting the best action sequence of all.

Also Read: Netflix May Need A Few More Episodes Before The Plot Turns Bullish

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.