The proposed US$110b merger between Paramount and Warner Bros. Discovery, now facing a 14 day restraining order and an antitrust lawsuit from multiple states, is reshaping how investors think about media and entertainment stocks exposed to the fallout. Regulatory uncertainty, the risk of higher costs such as ticking fees and breakup fees, and questions about market power in film and cable are suddenly front and center. Below, you will see 3 stocks from a focused screener of media and entertainment companies that sit outside the current regulatory crossfire, and how this news event could influence their risk and return profile.

PubMatic (PUBM)

Overview: PubMatic is a US-based technology company that runs a cloud platform helping digital publishers and streaming services sell their ad space automatically in real time to advertisers across mobile, desktop, video, over the top and connected TV formats worldwide.

Operations: PubMatic generates about US$281.7m in revenue from internet information provider services, with around US$153.4m from the United States and the remainder spread across EMEA, Asia-Pacific and other regions.

Market Cap: US$591.2m

Investors watching the Paramount and Warner Bros. Discovery saga may find PubMatic interesting as a picks and shovels play on independent streaming and digital media, as publishers seek more control over monetisation and data. The company is leaning into connected TV, commerce media and AI driven tools like AgenticOS and Decision Fabric. Management describes these as higher margin and more resilient than legacy display, even as current losses and customer concentration with major demand side platforms keep risk elevated. At the same time, recent insider selling, index removal and leadership changes indicate this remains a higher risk, higher potential story that may warrant closer scrutiny.

PubMatic’s push into connected TV, commerce media and AI tools like AgenticOS and Decision Fabric could be reshaping its risk reward equation, but the real hinge points only show up in the 2 key rewards and 1 important warning sign

Perion Network (PERI)

Overview: Perion Network is an Israel based digital advertising company that helps brands, agencies and retailers run, automate and optimize campaigns across formats like connected TV, digital out of home, retail media and search using its Perion One platform and AI tools such as Outmax AI Agent.

Operations: Perion Network generates about US$441.0m in revenue from its High Impact Advertising Solutions segment.

Market Cap: US$368.5m

Perion Network sits at the intersection of rising digital ad formats like connected TV, retail media and digital out of home. The company is pitching its AI driven Perion One and Outmax stack as a way for advertisers to aim to achieve more tangible results from the same budget, as seen in recent case studies where clients reduced customer acquisition costs or carbon intensity. At the same time, Perion is still loss making, guidance assumes a future earnings recovery, and there has been heavy insider selling alongside relatively high executive pay. This raises questions about alignment while the turnaround is still in proof of concept mode. For investors tracking the fallout from the Paramount and Warner Bros. Discovery merger uncertainty, Perion provides a different way to gain exposure to digital media spending without tying everything to any single studio or broadcaster.

Perion Network’s AI story and multichannel reach may be masking a much bigger swing factor in the business. The full picture only really comes through in the 3 key rewards and 1 important warning sign

E.W. Scripps (SSP)

Overview: E.W. Scripps is a US media company that owns local TV stations and national networks such as Scripps News, Court TV and ION, distributing news, entertainment and live events across broadcast, cable/satellite, connected TV and digital platforms.

Operations: E.W. Scripps generates about US$1.36b in revenue from Local Media, US$782.2m from Scripps Networks and US$17.9m from Other activities, with minor intersegment eliminations, all primarily in the United States where revenue totals about US$2.14b.

Market Cap: US$283.8m

E.W. Scripps is one of the few pure play TV and streaming platforms that could potentially see increased attention if the Paramount and Warner Bros. Discovery merger stalls, as advertisers and viewers look for alternatives across its local stations, ION networks and sports portfolio. The company is pushing into connected TV and ad supported streaming, adding rights such as the Detroit Pistons and resolving distribution disputes including the recent DIRECTV blackout, while working on debt reduction and refinancing. At the same time, Scripps is reporting losses, carries meaningful leverage and faces ongoing pressure from cord cutting and large digital advertising platforms. How these factors balance out, particularly with the stock trading below some fair value estimates, is a key consideration for investors.

E.W. Scripps sits at the crossroads of broadcast, streaming and debt reduction. Yet the real twist in this story is how those moving parts line up in the analysis report for E.W. Scripps

The three stocks covered here are just a starting point. The full Media and Entertainment Sector screener surfaces 12 more media and entertainment companies that carry equally compelling narratives around streaming, digital content and film production. Use Simply Wall St to identify and analyze the specific catalysts, financial health metrics and risk factors discussed here so you can focus on the highest conviction ideas that fit your approach.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.