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Last updated: 04.12 18:56
Top Undervalued
+1.4¢
(No)
Will Paramount close Warner Bros. acquisition by end of 2026? AI analysis: • +1.4¢ undervalued • Live Prediction Market fair value & mispricing alerts.
Undervalued Options Insights:
The price of Option 'Yes' has stabilized between 67c and 72c over the past week. Based on previous a...
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Outcomes
Market
Price
AI Fair
Value
Value
Edge
YesNo
70.4¢
29.6¢
69¢
31¢
0¢
+1.4¢
⚠️ Risk Warning: Live data may lag! Prices can shift instantly due to news or low liquidity. Before trading, use AI Chat for [Live Recalculate], [Check Liquidity], [Trollbox Radar], or review [Fair Value Logic] to verify.
Rule Risk
There is significant ambiguity and definition risk. The market requires Paramount to 'acquire control', but in the current Feb 2026 context, Paramount (now Paramount Skydance) is engaged in a hostile takeover and proxy fight, while the WBD board has already agreed to a deal with Netflix. Key risks: 1) If the Netflix deal fails and Paramount acquires only specific assets rather than full 'control', the resolution is unclear. 2) The deadline of December 31, 2026, is extremely tight. Given that the DOJ has already initiated an antitrust review, such regulatory processes often take 12-18 months. Even if Paramount wins the bidding war, if the deal does not legally 'close' by year-end due to regulatory delays, the market resolves to 'No'. M&A history (e.g., Microsoft/Activision) shows closings are frequently delayed beyond initial targets.
Hedging
NFLX
PARA
WBD
This event has extreme deterministic impact on the involved stock prices. WBD is the target; its price will directly peg to the winning bid (Netflix's $82.7B vs Paramount's $108.4B). A 'Yes' resolution (Paramount wins) implies a massive upside for WBD to match the hostile premium. If NFLX loses, its stock could react to the loss of a growth driver or relief from massive spending. Paramount (PSKY) would face a significant debt burden if it wins, likely pressuring its stock. This is a classic merger arbitrage hedging scenario.