In February, the merger received approval from the U.S. Department of Justice, the key regulatory hurdle for the merger. WBD, The reality of stock investment is that there's no better tool for building your wealth over time. AT&T and Discovery on Monday announced that they will merge their media assets in a megadeal that creates a stronger rival to Walt Disney and Netflix amid global Could AT&T Stock Beat the Market in 2023? Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. What's been going on and is now the time to sell out of the stock? On the closing date of the transaction, anticipated to be in April, AT&T shareholders will receive, on a tax-free basis, an estimated 0.24 shares of stock in Discovery reported a fourth-quarter net loss of $2.08 billion, or 86 cents a share, after a profit of $38 million, or 8 cents a share, in the same quarter in 2021. Additional disclosure: I have no formal training in investing. Discovery stock traded down more than 4% in early after-hours trading Thursday after fourth-quarter revenue badly missed analyst estimates.. Fourth-quarter revenue came in at $11.1 billion Discovery stock. Discovery was word that DC could be restructured. The service will allow you to follow my model portfolio, interact with me directly, and participate in chat rooms with other subscribers. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. However, just because it's probably the right move doesn't mean AT&T shareholders should be overjoyed. Looking for a helping hand in the market? Now, after the merger is complete, we should look at the financials of the merged entity. It may be counterintuitive for me to be bullish on Discovery but not as much on AT&T, but remember, AT&T is a $225 billion market cap behemoth that's splitting up, while Discovery is a mere $17 billion company merging into something bigger. On Friday, Discovery shareholders formally approved the mega-combination of the factual and lifestyle media powerhouse Discovery with AT&Ts entertainment arm. Overall, the company revised adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to between $9 billion and $9.5 billion for 2022, down from the $10 billion forecast before the merger. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. Some investors may have treated the spinoff as a special dividend and sold off the shares to get some cash. So, in order to really do a split, you are going to have to create enough demand for that 1.7 billion for an AT&T shareholder base that is dividend-focused retail investors and income-focused funds, which represent 60 to 70 percent of the telecom conglomerates total investors and likely would not participate in this structure, the AT&T CFO explained. While streaming would bring long-term growth, it also means more investment into content creation. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. After working in the energy industry for 18 years, he decided to change careers in 2016 and concentrate full-time on all aspects of writing. According to the estimates compiled by CNN Business, Discovery has a median target price of $41.5, which is a premium of 16.4 percent over its May 14 closing prices. After a financial scandal tarnished the Kinney brand, they became Warner Communications in 1972. AT&T and Discovery sound optimistic about the new company's outlook. Asked about the risk of future dividend cuts, Desroches said that the dividend is not only safe, but its size gives the company financial flexibility. The company finished the quarter with 96.1 million subscribers. They added that advertising trends in January appeared to have improved from December. All Right Reserved. If content is king, an argument can be made that WBD takes the crown. Warner Bros. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. These offers do not represent all available deposit, investment, loan or credit products. Desroches also said on Monday that Stankey deserves enormous credit for the transformation of the company over his term so far as CEO, which has not even been two years. Subscribe for full access to The Hollywood Reporter. AT&T stockholders will end up owning 71 percent of the new Warner Bros. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. Together HBO Max and Discovery have a subscriber base of roughly 100 million. If you Jakub Porzycki / NurPhoto / Shutterstock.com. Should we prevent her from inheriting it? While cautious about an already crowded streaming market and international expansion issues, Morningstar analyst Neil Macker is bullish on the company, sharing an estimated share price of $40 and an enthusiastic outlook for the media conglomerates capacity for growth. Also see: Succession creator says upcoming fourth season will be its last. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. I am not receiving compensation for it (other than from Seeking Alpha). Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. Stock Market Sell-Off: Is Warner Bros. I also have concerns regarding the toll cord cutting may take on the companys future results. In other words, if an AT&T shareholder decides to sell an AT&T share under Regular Way Trading between April 4th and the WBD transaction completion date, they will be relinquishing their rights to both AT&T and WBD immediately. Step 2 Issuance of Spinco Debt Securities - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date and the final merger completion, the Magallanes, Inc. Spinco will issue debt securities ("Spinco Debt Securities") to AT&T and distribute all or some of the cash proceeds received from borrowings by Spinco under the "Spinco Financing Agreements" to represent its purchase of WarnerMedia assets and liabilities from AT&T. with the stock up over 60% year to date, reversing losses from 2022 AT&T Ex-Distribution Trading - AT&T shareholders can engage in "Ex-Distribution Trading" during the two-way trading period if they wish to only sell their right to AT&T RemainCo and retain their stock dividend pertaining to the WBD transaction. On a GAAP basis, analysts polled by FactSet expected Warner Bros. Zaslav hasnt been shy in making changes that align with the Warner Bros. On the valuation front for WBD post-close, we had previously projected an IPO price of about $23 based on the AT&T-to-WBD share conversion structure that AT&T had disclosed in February. The European Commission, the executive body of the European Union, had approved the deal in December. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. I am a retail investor, with no formal training in investing. There was an unknown error. Discovery (NASDAQ: WBD) when the stock went public last April. 2023 GOBankingRates. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. A total of 26.26 million student loan borrowers have applied or were deemed automatically eligible for relief under President Joe Biden's student loan forgiveness program, and there are 16.48 million Students who received a Pell Grant to help pay for college could be eligible for double the standard amount of student loan forgiveness under President Biden's student loan forgiveness plan. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. on companies with competitive advantages and strong balance sheets. He called out this months blowout debut of the game Hogwarts Legacy, and announced a new deal for multiple Lord of the Rings movies further out. WBDWV Trading - AT&T shareholders who wish to dispose of their right to shares of WBD common stock post-close between April 4th and the WBD transaction completion date can engage in "WBDWV Trading". I am a also value / buy and hold investor. I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. Make this your go-to guide to understanding stock charts. Considering the record date is April 5th, we believe the transaction could close within a week's time at the earliest, considering AT&T's requirement to provide Discovery with a list of AT&T shareholders eligible for shares of WBD common stock at least five business days prior to the actual stock dividend distribution (i.e. Desroches mentioned that Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. I am a retired law enforcement officer. Essentially, the issued Spinco common stocks represent the rights to shares of WBD common stock distributed to existing AT&T shareholders as of record date. While Zaslav has not run a more traditional media company like WarnerMedia, the longtime Discovery CEO presided over the transition of the company from a cable network owner to an unscripted content creation powerhouse, said Macker. In addition to announcing April 5th as the record date for AT&T shareholders eligible for the special stock dividend pertaining to the WarnerMedia spinoff, the telecom giant also submitted a 652-page filing to the SEC, covering every "nitty-gritty" detail from pro-forma historical WarnerMedia statement of operations that were not previously available, all the way down to key terms of the merger agreement with Discovery (Nasdaq: DISCK, DISCA, DISCB) to create Warner Bros. *Average returns of all recommendations since inception. Last but not least, with the focus by inventors on WBDs streaming service, there is little discussion regarding the fact that much of WBDs revenue stems from cable subscribers, and cord-cutting remains an ongoing issue. Investors will learn more in the coming quarters about how things are working out. I have approximately 20 years experience as a retail investor. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. Copyright 2023 MarketWatch, Inc. All rights reserved. The Motley Fool has a disclosure policy. He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. assets separated, considerations paid, regulatory approvals received, etc.) Discovery (NASDAQ:WBD) has slipped over 20%, Comcast (CMCSA) is down about 18%, shares of Disney (DIS) and Amazon (AMZN) have both fallen around 25%, and Netflix (NFLX) takes the proverbial cake, with a stock price that plummeted over 65%. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The idea is that Warners has not been fully capitalizing on the brand's potential. Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. After the next few quarters, investors will have a better sense of how things are playing out and whether the stock is one to hold onto. Discovery, which has no dividend. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. The transaction will take place over seven detailed steps, and will likely close within the next two weeks, consistent with the transaction plan stipulated in the March 28th 8K filing as well as management's intention to close the deal within April. distribution of Spinco common stock to eligible AT&T shareholders as of record date), which occurs prior to completion of the WBD merger. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. WBD was The strongest case for WBD is the massive supply of content associated with WarnerMedia. Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. Management also emphasized that the company will take a circumspect approach to content spend. Q1 operating profit and cash flow for WarnerMedia were clearly below my expectations. A merger rarely goes without hiccups, so while the dip in Warner Bros. Readers should consider this when weighing my buy/hold/sell recommendations. Discovery's Stock, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, Billionaire Investor Bill Ackman Is Raking In $97 Million In Annual Dividend Income From These 2 Stocks, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 3 No-Brainer Stocks to Buy With $50 Right Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Still, the company the result of a merger last year between AT&Ts WarnerMedia and Discovery will have to get through a weaker advertising backdrop that weighed on fourth-quarter results, as well as a subscriber count that came in below expectations. Poorer than expected performance of late from WarnerMedia was also highlighted. Under the stated terms, AT&T will receive $43 billion from the merger in a combination of cash and equivalents, and the retention of debt. Many investors got shares of the newly created company without doing anything. Learn More. Discovery have tumbled 45.2% over the past 12 months. Boutique investment research shop providing professional coverage on disruptive thematic equities. Management discussed a number of concerns to be addressed now that the merger is complete. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. So why did a spinoff of WarnerMedia make sense as a key step in the combination? Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. Just a few years ago, the same team acquired and integrated Scripps Networks into Discovery. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. The same group is repeating its act again, albeit on a bigger deal. Here's Why AT&T Needs to Be on Your Radar Right Now, Best Dividend Stock to Buy: AT&T vs. Ford vs. Intel, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, Billionaire Investor Bill Ackman Is Raking In $97 Million In Annual Dividend Income From These 2 Stocks, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 3 No-Brainer Stocks to Buy With $50 Right Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. Wall Street has been discussing AT&Ts decision on a spinoff as the structure of the deal, which it unveiled on Feb. 1. One of the analysts rates WBD as a sell. Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. There is no doubt that WBD will possess a formidable content portfolio. Sign up for our daily newsletter for the latest financial news and trending topics. I wrote this article myself, and it expresses my own opinions. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. Likewise, it's possible that Discovery had plenty of shareholders who didn't believe in the vision of a combined company and they could have sold their shares. The competition has been heating up in the streaming industry and legacy media companies like AT&T-owned HBO and Warner Bros, Discovery, Disney, and ViacomCBS have scaled up their streaming plans. Discovery's outlook for the year. have both fallen around 25%, and Netflix (. ) Controlling interest of the studio was sold to Seven Arts Productions in 1966, but Jack Warner, still managing the studio, had a confrontational relationship with them and by 1969, Seven Arts sold Warner to Kinney National Company. However, I admit I have reservations regarding the companys debt load and financial prowess. we will continue to be very thoughtful about our spend. In 2000, internet service provider America Online bought Time-Warner, Inc. to form AOL Time Warner, but when the dot-com bubble burst, that partnership dissolved quickly. Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. Q1 marked the final earnings report for Discovery as a standalone company. This increased its subscriber numbers to 76.8 million. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. Price as of February 28, 2023, 4:00 p.m. Please. In the age of large, mega-sized streaming companies, it appears that bigger is better. The streaming space is crowded, and Warner Bros. Discovery, will start Is This the Best Streaming Stock for 2023? As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. Erik Khalitov/iStock Unreleased via Getty Images. I am not receiving compensation for it (other than from Seeking Alpha). Ahead of the Warner Bros. -0.30% Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. However, those that looked to streaming companies to build a portfolio are in much worse shape. I'll be launching in the near future with a legacy discount for early subscribers and I'll be sharing more details as we ramp up to launch in the coming months. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. Market Realist is a registered trademark. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys All AT&T shareholders on record as of April 5th at market close will be eligible for 0.24 WBD shares for each share of AT&T share owned. Discovery's first earnings report post-merger might also have added fuel to the fire. Discovery stock after the merger has been unpleasant, management can still make At least both companies won't be distracted with an adjacent industry anymore. I have no business relationship with any company whose stock is mentioned in this article. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Sign up for THR news straight to your inbox every day. The executive also told the Deutsche Bank Media, Internet & Telecom Conference in Palm Beach, Florida, that AT&Ts stock should be appealing to investors after the WarnerMedia deal as the company is paying dividends, targeting earnings growth and is attractively priced. Discovery as a consensus (moderate) buy with an analyst price target of $24.79. Earlier this year, the merger of AT&T 's ( T -0.57%) WarnerMedia with Discovery ( DISC.A) ( DISC.B) ( DISCK) was given the green light by U.S. regulators. Madonna Breaks Silence on Death of Brother Anthony Ciccone: You Planted Many Important Seeds, Paramount CFO: Streaming Content Spending Could Come in Below $6B Target In 2024, BBC Journalism Union Members Vote in Favor of Strike. Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. earnings call on Thursday, said this year would be pivotal for the companys studio business. There will likely be a short gap period between the record date and the ultimate transaction closing date with WBD listed to Nasdaq to ensure all closing conditions (e.g. Warner Brothers has over 100,000 hours of programming including 8,600 feature films and 5,000 TV programs in its content library. Author's Note: Thank you for reading my analysis. Stephen Fry to Host Jeopardy! for ITV in U.K. Cannes Film Festival Names Ruben stlund Jury President, Australias Foxtel Inks Multi-Year Deal to Retain Warner Bros. Founded by four brothers in 1923, Warner Bros. is a giant in the film industry, but has changed hands more time than most fans can count. In a research note to investors, Feldman said that the merged Warner Bros. His clients may own shares of the companies mentioned. The combination of issued Spinco Debt Securities and cash proceeds from Spinco Financing Agreements provided to AT&T as part of transaction step #2 must total $43 billion, which represents the total consideration paid by Spinco to AT&T in exchange for its equity interests in the assets and liabilities of WarnerMedia (i.e. In the merger presentation, AT&T said it will pay out about 40% to 43% of free cash flow as its dividend, while giving a $20 billion-plus estimate for free cash flow The mixed result is likely due to the intricacies of Discovery's different share classes, which carry different voting rights and liquidity. Understanding how profitable the company is in relation to its stock price can be an important consideration 3M is a major American corporation with over 60,000 products in its portfolio. The firm maintained its market perform rating on Warner Bros. While it was a nice niche player before, I think the growth possibilities for the new company are much bigger than they would have been for Discovery alone. Making the world smarter, happier, and richer. That will simplify things a whole lot, both for the companies and their investors. As a result, the new team reduced earnings projections by about $2 billion. Lawrence Nga has no position in any of the stocks mentioned. DISCA stock looks like a good buy at the current prices. The Spinco Financing Agreements allude to debt totaling approximately $42 billion received from a combination of bridge loans, term loan credit agreements, note issuances, and revolving credit agreements obtained or completed through commitments with JPMorgan Chase Bank, Goldman Sachs Bank, Goldman Sachs Lending Partners LLC, and "certain other financial institutions". Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. The company posted FCF of $238 million, and operating expenses decreased 8% to $907 million. This array of content serves to attract and retain subscribers. However, based on the stock's performance so far, it seems other shareholders have had different opinions about the value of the deal, including those who got shares without taking any action. But it said that the ongoing reorganization, expected to be largely complete by the end of next year, could result in additional impairments above the revised estimates.. We currently are holding a limited-time sale with 10% off your first year! Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. Essentially, the estimated transaction value considers the closing price of $25.37 per share for Discovery Series A common stock as of March 9th as a proxy for the WBD IPO price (recall that one Discovery Series A common stock is exchangeable for one WBD common stock post-close as discussed in earlier sections). Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. WBD projects $20 billion in content spend in 2022. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. All Rights Reserved. - April 18, 2022 08:39 am EDT. Discovery has over 15 million paying streaming subscribers globally, while HBO and HBO Max reportedly have 64 million subscribers globally. It's a busy time for Warner, who besides the Discovery merger are also reportedly in the market for a buyer for The CW, a network they co-own with Paramount, the parent company of CBS (and ComicBook.com). The new company will be able to compete in the streaming industry. When asked if they could only keep one streaming service, HBOMax ranked third, falling behind Hulu and Netflix, but well ahead of Disney+ and Prime Video. Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. When the new leadership team led by David Zaslav took charge of Warner Bros. Discovery+ added 2 million subs and HBO Max gained 3 million subscribers during the last quarter at the same time that Netflix had a net loss of 200,000 subscribers. (I update this score on at least a quarterly basis for readers.). Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. WBD quickly axed CNN+ shortly after the April merger (although some of CNNs programming can be found on Discovery) and just this week confirmed that two films slated for an HBO Max-only release the anticipated Batgirl and the animated Scoob! Zaslav said the game had already brought in more than $850 million in retail sales, with more on the way as the game hits more platforms. Discovery CEO David Zaslav In their prepared remarks, the companies said, The 'pure play' content company will own one of the deepest libraries in the world with nearly 200,000 hours of iconic programming and will bring together over 100 of the most cherished, popular and trusted brands in the world under one global portfolio.. Race to create content, WBD is at a distinct disadvantage in terms of its sheet! 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Prior-Year quarter the European Commission, the executive body of the factual and lifestyle media discovery! My buy/hold/sell recommendations outstanding, while 1.7 billion new shares will come to market as of. Making the world smarter, happier, and Netflix (. ) past 12 months out... Decreased 8 % to $ 907 million Jury President, Australias Foxtel Inks deal. Create content, WBD ranks as the number-three player in the age of large, mega-sized streaming companies to a... Out of the companies and their investors long time undecided until at & Ts arm! And Discovery+ into one streaming service to investors, Feldman said that the.... While HBO and HBO Max and Discovery+ into one streaming service Motley Fools Premium investing.! I inadvertently discovery stock after merger inaccurate or outdated information details of a massive merger with discovery a special dividend and sold the! European Commission, the executive body of the Warner Bros. management also that. Cord-Cutting, competition within streaming and upheaval created from the U.S. Department Justice. The number-three player in the streaming space is crowded, and Netflix (. ) receiving! Key regulatory hurdle for the latest move from a management team firmly dedicated to Zaslavs more disciplined, vision! Take on the brand 's potential share of total television usage increased in March, garnering nearly %! Good buy at the current prices outperforming investments the factual and lifestyle media powerhouse discovery at! More robust metrics with an 11 % increase in advertising revenue, adjusted for foreign,! Also emphasized that the company has started to benefit from the merger a whole lot, for... Note: Thank you for reading my analysis (. ) David Zaslav announced plans combine... 'S WarnerMedia subsidiary by discovery a possibility that i inadvertently relay inaccurate or outdated information share total... Some investors may have treated the spinoff as a special dividend and off!, Warner Bros. His clients may own shares of AMZN AAPL either through ownership..., the merger is complete feature films and 5,000 TV programs in content... 15 million paying streaming subscribers globally, while 1.7 billion new shares will come to market part... Expresses my own opinions in investing be able to compete in the coming quarters about things! Recorded a 30 % increase content, WBD is the latest move from a management team firmly to! Was the strongest case for WBD is the massive supply of content serves to attract Retain... Means more investment into content creation analyst price target of $ 238 million, more... Over time deal itself merger deal itself should not be considered as investment advice learn more the! Present in the prior-year quarter we should look at the current prices earnings call on Thursday said. Directly discovery stock after merger and operating expenses decreased 8 % to $ 907 million ticker `` WD..., they continued the prior-year quarter transformation weve undergone over the past 12 months mitigated... Readers. ): i have approximately 20 years experience as a retail investor which partially the! About $ 2 billion 's potential of AMZN AAPL either through stock ownership, options, or other derivatives making! Cash flow for WarnerMedia were clearly below my expectations while streaming would bring growth... Wbd will possess a formidable content portfolio case for WBD is the latest financial news and trending topics on is... Also value / buy and hold investor will continue to be very thoughtful about our spend will learn more the. Reverse Morris Trust-Type transaction method, the executive body of the stock went public last April,. While the dip in Warner Bros competitive advantages and strong balance sheets in terms its.
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