Kartoon Studios (NYSE: TOON) Gains Momentum as Paramount Skydance (PSKY) Renews Hostile Bid for Warner Bros (WBD) Disrupting Netflix (NFLX)

The media takeover war is heating up again - is Kartoon Studios (NYSE: TOON) being pulled into the conversation?

As of February 10, 2026, Paramount Skydance (NASDAQ: PSKY) has renewed and enhanced its hostile takeover bid for Warner Bros. Discovery (NASDAQ: WBD), aiming to disrupt a competing acquisition effort from Netflix (NASDAQ: NFLX). The renewed bid underscores a broader industry reality: scale, premium intellectual property, and streaming leverage have become critical strategic assets in a consolidating entertainment landscape.

For investors, the escalation has implications beyond the large-cap giants. When mega-mergers face political resistance, regulatory scrutiny, and shareholder battles, strategic buyers often pivot toward smaller, scalable content platforms that can be integrated quickly and without antitrust friction. That shift places companies like Kartoon Studios squarely in focus.

TOON has already been gaining traction, supported by improving fundamentals and expanding franchise visibility. The company reported Q3 revenue of $9.9 million, up 13% year-over-year, while year-to-date revenue climbed 28% to $29.7 million. Its production arm, Mainframe Studios, delivered 45% quarterly revenue growth and 65% year-to-date growth, backed by multi-year contracts with Sony, Disney, and Spin Master extending through 2027. Operating losses narrowed significantly as cost controls and recurring revenue streams strengthened margins.

Beyond production scale, Kartoon Studios operates Kartoon Channel!, ranked as the #1 kids' streaming app on the Apple App Store. The company is also preparing to fully launch its flagship franchise, "Hundred Acre Wood's Winnie and Friends," a multi-platform property designed for global licensing, merchandising, and long-term monetization. Combined with its control of Stan Lee Universe, TOON is building a library of evergreen, family-focused IP at a time when major streaming platforms are aggressively seeking durable content assets.

The renewed PSKY hostile bid for WBD reinforces how competitive the battle for premium content has become. If Paramount Skydance succeeds, the landscape shifts dramatically. If Netflix prevails, the competitive pressure intensifies further. In either scenario, mid-tier and small-cap content owners with scalable IP could become increasingly strategic.

While there is no confirmation that Kartoon Studios is in acquisition talks, rising industry consolidation, improved financial performance, and accelerating franchise launches are converging at the same time. Investors scanning the streaming and media sector for asymmetric opportunities are increasingly viewing TOON not just as a niche children's entertainment company, but as a scalable platform positioned in the right place at the right time.

As takeover headlines dominate the sector, Kartoon Studios appears to be gaining altitude alongside them.

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