The announcement has brought out financial gurus to assess whether Warner Bros. AT&T is also still behind competitors in 5G deployment, and is up against stiff competition in the fiber broadband space. Discovery. Discovery stock is a bargain buy Warner Bros. The conversion will ultimately result in 71% AT&T shareholder ownership in WBD, with the remaining 29% ownership in WBD attributable to Discovery shareholders. A merger rarely goes without hiccups, so while the dip in Warner Bros. 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. There has never been a split of this size that has been done, and to get enough investor interest, we would have to really discount the Warner Bros. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Discovery, with Discovery shareholders holding the rest. Make this your go-to guide to understanding stock charts. Could AT&T Stock Beat the Market in 2023? AT&T has applied an exchange ratio of 2.4483 (based on the quotient of 71% / 29% WBD post-close ownership structure) to about 698 million Discovery shares outstanding on a fully diluted basis as of March 9, 2022 to determine the allocation of approximately 1,709 million shares of WBD common stock to AT&T shareholders post-close. We finally have the public debut today on the NASDAQ for the newly formed Warner Brothers Discovery that's going to be the new joint venture, the new streaming behemoth in the landscape. At the end of 2021, the pro forma debt for WBD was over $56 billion. It has been awful time for investors in media company 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. Revenue from U.S. WBD, There was an unknown error. Discovery is now a buy, hold or sell. 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. I am a retail investor, with no formal training in investing. But if I take a step back here and just look at, call it, the past 15 months for WarnerMedia sort of as a carve out-group, we're looking at more than $40 billion of revenue and really virtually no free cash flow. There is currently no definitive answer to when the WBD merger will close or what its post-close value will be. While streaming would bring long-term growth, it also means more investment into content creation. Should we prevent her from inheriting it? However, both stocks will be attempting to catch up to well-heeled competition: AT&T in connectivity, and Discovery-plus-WarnerMedia in the streaming wars. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. On Feb. 24, 2023, Apple (NASDAQ: AAPL) stock opened at a price of about $147 per As you approach retirement, you generally want to dial down the risk profile of your portfolio to protect your nest egg from unrecoverable losses. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Discovery shareholders would own 29 percent of the new entity, while AT&T shareholders would hold a 71 percent stake in the new company. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. Zaslav hasnt been shy in making changes that align with the Warner Bros. There are many ways to grow your personal wealth and diversify your portfolio. By Russ Burlingame Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. It had been up as much as 9% in morning trading but has been in a In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. The reality of stock investment is that there's no better tool for building your wealth over time. The merger with Discovery has the above-stated benefits for AT&T, including significantly reduced debt. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. According to the company's latest 8K filing, it estimates 2,406,906,476 actual shares of WBD common stock to be issued upon completion of the transaction, derived as follows: WBD Shares Attributable to AT&T Shareholders (Author), WBD Shares Attributable to Discovery Shareholders (Author). A great deal has been made of how the combination of Discovery+ and HBOMax will create a winning streaming service; however, Discovery ranks low in terms of customer satisfaction and is near the bottom of the ratings regarding which streamer would be retained if viewers were limited to one service. DISCA stock looks like a good buy at the current prices. The new entity will focus on streaming services. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. All relevant risks are not covered in this article. In his first earnings report since an April merger created one of the largest media companies in the U.S., on Aug. 4 Warner Bros. I am not receiving compensation for it (other than from Seeking Alpha). The Motley Fool has a disclosure policy. Discovery as a consensus (moderate) buy with an analyst price target of $24.79. The Hollywood Reporter is a part of Penske Media Corporation. Discovery transition into a direct-to-consumer powerhouse by focusing further investment in content and the user experience, which has garnered complaints on both HBO Max and Discovery+.. If so, how? have both fallen around 25%, and Netflix (. ) Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. Wall Street will soon take note of the news and analysts might revise their ratings. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. we also think that one of the big opportunities here is going to be churn reduction. 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. Discovery Inc. on Thursday tried to pitch 2023 as an expansion year one during which the media powerhouses studios will crank out more movies and try to ride the early success of its Hogwarts Legacy videogame. Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. The thinking is that this could lead to a surge in subs when the two services are combined. The thinly traded shares (ticker: DISCB) that are 95% owned by media mogul and Discovery board member John Malone traded Tuesday at $68.88, down $1.02. AT&T's shares were down 2.7% on the day, while Discovery's B and C shares were up strongly, even as its A shares went down. Investors had high hopes for Warner Bros. Discovery, with Discovery shareholders holding the rest. My primary focus is on dividend bearing stocks. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. We currently are holding a limited-time sale with 10% off your first year! We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Bret Kenwell. 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. Apr 11, 2022 1:58 PM EDT. In the last quarter before the merger, AT&T reported 2.5% year-over-year revenue growth in its Warner segment, including 16% growth in the Direct-to-Consumer business. *Average returns of all recommendations since inception. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. I am a also value / buy and hold investor. Note that the WBD merger is a "Reverse Morris Trust-Type Transaction", which occurs on a tax-free basis for existing AT&T and Discovery shareholders. All Rights Reserved. Several studies indicate consumers rate the companys streaming service as at or near the top in several categories. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. Discovery planned to keep Discovery+ as a standalone streaming platform, as the company weighs how to make more of its content available in a single place. Under the terms of the deal, which is structured as an all-stock transaction, AT&T would receive $43 billion in cash and debt with its shareholders controlling 71% of Price as of February 28, 2023, 4:00 p.m. 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. 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. Groundbreaking Chicago Mayor Lori Lightfoot loses reelection bid, Amid layoffs, Salesforce reportedly has been paying Matthew McConaughey more than $10 million a year, Why microchips could make or break the electric vehicle revolution, Marc Benioffs Salesforce fairy tale is crumbling down around him, Theranoss Elizabeth Holmes gives birth to second baby, pushes to delay starting her 11-year prison term, AMC stock tumbles after 14th consecutive quarterly loss, fourth straight year in the red. The strongest case for WBD is the massive supply of content associated with WarnerMedia. WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. The Wall Street Journal this month reported that Warner Bros. In addition, Discovery didn't have a dividend prior to this announcement, while AT&T was a former Dividend Aristocrat that will cut its dividend in half in the wake of the deal. The estimated transaction value takes into consideration the closing price of $25.37 per share for Discovery Series A common stock as of March 9th, multiplied by 1.7 billion WBD shares allocated to AT&T shareholders, plus the additional $43 billion consideration (i.e. 111). The new streaming behemoth will have a huge library of 200,000-plus hours of content, from Warner Bros. Studios, HBO and MBO Max, The Turner channels (TNT, TBS, CNN), as well as Discovery's comprehensive portfolio of unscripted content. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Discovery, Wall Street is turning its attention to the outlook for the new conglomerates stock that began trading on Monday under the ticker symbol WBD.. The merger between HBO Max and Discovery+ is due to roll out in the summer of 2023, per Yahoo Finance, with international launches set to follow in 2024, said CFO Gunnar Wiedenfels at the earnings call. Price as of February 28, 2023, 4:00 p.m. 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. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). 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. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. I have approximately 20 years experience as a retail investor. on companies with competitive advantages and strong balance sheets. That 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. If you Jakub Porzycki / NurPhoto / Shutterstock.com. Erik Khalitov/iStock Unreleased via Getty Images. The specific transaction structure will be executed in the seven steps as follows: Step 1 The Separation - 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, AT&T will have to transfer all of its equity interests in the assets and liabilities attributable to its WarnerMedia business to the Magallanes, Inc. Spinco. These offers do not represent all deposit accounts available. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. We had previously estimated about 2.4 billion WBD shares outstanding post-close according to AT&T's stock dividend structure of 0.24 WBD shares for each AT&T share. Warner Bros. (I update this score on at least a quarterly basis for readers.). All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. 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 Discovery (WBD -2.01%). Discovery. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. Author's Note: Thank you for reading my analysis. In our last coverage on the upcoming WBD transaction and its implications for AT&T post-close, we had provided a detailed estimate on WBD's upside potential attributable to AT&T shareholders post-close. AT&T Regular Way Trading - AT&T shareholders can engage in "Regular Way Trading" during the two-way trading period if they wish to sell "both the share of AT&T common stock and the right to receive shares of WBD common stock in the transaction". 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 bros bring sold to Discovery? Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. I am not receiving compensation for it (other than from Seeking Alpha). AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. 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. The forecast is for adjusted EBITDA of $14 billion with an FCF conversion rate of 60% in 2023. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. WBD was His clients may own shares of the companies mentioned. After all, there has been a more chaotic revolving door over in the HBO C-suite since the merger with AT&T, with lots of turnover and restructuring. I am not receiving compensation for it (other than from Seeking Alpha). At this point, the majority of heavy lifting (related to restructuring charges etc.) Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. Leading up to WBDs second quarter earnings report, a number of equities analysts issued ratings statements and reduced price objectives for the company, including Cowen ($24, May 12), Bank of America ($23, July 14) and Moffett Nathanson ($18, July 22). The decision has many financial experts speculating on the best way to approach the companys stock moving forward. The European Commission, the executive body of the European Union, had approved the deal in December. Please try again later. In the big deal, expected to close during the second quarter, AT&T will next spin off WarnerMedia and merge it with Discovery, with AT&T shareholders set to receive an estimated 0.24 share in the new company for each AT&T share held. If content is king, an argument can be made that WBD takes the crown. And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. Read More About: AT&T If you have an ad-blocker enabled you may be blocked from proceeding. ET. Warner Bros. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. Its options had been the spinoff, in which AT&T stockholders will receive shares in the merged company in addition to their existing AT&T shares; a split-off, which would have allowed shareholders to choose between stock of AT&T and the new company; or some combination of the two. Prior to WBDs quarterly report announcement, Barrons reported that analysts at Goldman Sachs reinstated a buy rating and price target of $22 on Warner Bros. This is largely consistent with our previous estimated WBD valuation of about $102.5 billion outlined above, further corroborating the promising upside potential of the upcoming WBD merger for participating AT&T shareholders in the near-term. Discovery. With the steady hand of Zaslav now in command of more world-class media assets he can now deploy internationally, Discovery has gone from a small unscripted player to a scaled global behemoth across scripted, unscripted, and news content. 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. I am a graduate of the U.S Army Ranger school and a former member of the 1st Ranger Battalion and The Old Guard (U.S Army Honor Guard.) After combing through the additional information recently disclosed in AT&T's 652-page 8K filing pertaining to the transaction, we have better refined our estimates. Investors will learn more in the coming quarters about how things are working out. Net income for the quarter hit $456 million, with EPS of $0.69 cents. AT&T stockholders will end up owning 71 percent of the new Warner Bros. The new management is trying hard to turn around the ship. At least give management a few quarters to execute their strategies. Boutique investment research shop providing professional coverage on disruptive thematic equities. One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. we will continue to be very thoughtful about our spend. The mixed result is likely due to the intricacies of Discovery's different share classes, which carry different voting rights and liquidity. The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. 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! Discovery strategic shift. If you have an ad-blocker enabled you may be blocked from proceeding. Networks jumped 7% to $1.93 billion while International Networks registered 25% growth to $1.23 billion. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. Year-to-date, Warner Bros. That, plus the lower dividend, will allow AT&T to focus on building out its 5G network and its fiber footprint over the next few years. Is this happening to you frequently? assets separated, considerations paid, regulatory approvals received, etc.) The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Discovery (NASDAQ: WBD) when the stock went public last April. In the process of merging AT&T at 71% and Understanding how you are investing is just as important as what you are investing in. Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. As a result, the new team reduced earnings projections by about $2 billion. Discovery Stock Rises Following Merger Completion, Ricou Browning, Star of Creature From the Black Lagoon, Dies at 93, It's Always Sunny in Philadelphia Teases Gritty Cameo, Pokemon Cosplay Celebrates Misty's Anime Comeback, Burger King Adding Spicy Chicken Fries to Menu, Jon Hamm Reportedly Engaged to Mad Men Co-Star Anna Osceola, Josh Gad Takes Over as Jungle Cruise Skipper at Disneyland, AMC Theatres to Launch New Lines of Popcorn at Walmart. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. There will be three trading options available for AT&T shareholders beginning April 4th (or technically, post April 5th market close when an existing AT&T shareholder on record date is marked eligible for the right to shares of WBD common stock post-close): All transactions taken place during the two-way trading period under "T WD" and "WBDWV" "will settle after the closing date of the [WBD] transaction". Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. net asset value under U.S. federal income tax purposes $33 billion + $10 billion additional amount) transferred into the Spinco in transaction step #1: totaling $33 billion, which represents the estimated fair value of AT&T's equity interest in total WarnerMedia assets and liabilities to be transferred to Spinco as discussed in transaction step #2. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. Here are the key levels for 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. The streaming space is crowded, and Warner Bros. *Average returns of all recommendations since inception. The company posted FCF of $238 million, and operating expenses decreased 8% to $907 million. Cost basis and return based on previous market day close. I could be characterized as a safety first investor. However, most of the analysts rate the stock as a hold or some equivalent. Upon closing, Magallane, Inc. Spinco will merge with "Drake Subsidiary, Inc.", the wholly owned "merger subsidiary" of Discovery's to create WBD. Discovery, Inc. The company posted a 5% growth in U.S. advertising and an 11% increase in distribution revenue due to Discovery+. Now consider that the portfolio of Discovery+ will be added to that of HBOMax, and you have the makings of a content king. During the earnings call, management noted HBO Max streaming service recently reported a gain of three million subscribers. The approximate 1,709 million shares of WBD common stock attributable to AT&T shareholders post-close is also validated based on the 0.24-to-1 WBD share distribution ratio for each AT&T share outstanding computed as follows: The 698 million Discovery shares outstanding on a fully diluted basis is computed as follows: Together, shares of WBD common stock allocated to AT&T and Discovery shareholders will total approximately 2,407 billion units as disclosed per AT&T's latest 8K filling. to create Warner Bros. 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. 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. The management team has plenty of experience executing mergers. Discovery ("WBD"). Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. Warner Bros. An SEC filing last March, just prior to the merger, revealed that Discovery forecasts revenue from its U.S. linear TV business will decline by 4% per annum through By favoring theatrical releases and traditional TV models, Zaslav is turning his back on the streaming-first philosophy championed by his predecessor, WarnerMedia CEO Jason Kilar, The WSJ detailed. Under WBDWV Trading, AT&T shareholders will be able to sell their right to WBD shares distributed to them as a result of their AT&T share ownership as of the record date through the temporary Nasdaq ticker "WBDWV" beginning April 4th. People may receive compensation for some links to products and services on this website. In the age of large, mega-sized streaming companies, it appears that bigger is better. They added that advertising trends in January appeared to have improved from December. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. However, Warner Bros. Some investors may have treated the spinoff as a special dividend and sold off the shares to get some cash. When you buy stock, you're essentially buying a tiny piece of the company it represents. AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. There is no doubt that WBD will possess a formidable content portfolio. One of the analysts rates WBD as a sell. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. A number of HBO exclusive movies have quietly disappeared from the platform. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. Management discussed a number of concerns to be addressed now that the merger is complete. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. I own a house with my husband and mother. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. Discovery's ( NASDAQ: WBD) announcement that Hogwarts Legacy has generated $850 million in sales two weeks after its release shows why the gaming unit could boost the stock. takes the proverbial cake, with a stock price that plummeted over 65%. However, we have taken additional consideration of the valuation sensitivity analysis performed by the WBD transaction advisors, Allen & Company and J.P. Morgan, as disclosed in AT&T's most recent 8K filing dated March 28th to further gauge the upside potential in WBD post-close. The companies are also forecasting annual cost synergies of $3 billion. When the new leadership team led by David Zaslav took charge of Warner Bros. AT&T and Discovery sound optimistic about the new company's outlook. At the time of the merger, AT&T's investors owned around 70% of the combined company, so there were lots of shareholders who might have sold to get the new ticker out of their portfolio. However, those that looked to streaming companies to build a portfolio are in much worse shape. Warner Bros. Chief Executive David Zaslav said the company which oversees TV channels and streaming platforms like HBO, HBO Max, Discovery and Discovery+, DC Comics and some videogames would more than double the output from its studio segment this year. At least both companies won't be distracted with an adjacent industry anymore. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. SPX, See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. I have no business relationship with any company whose stock is mentioned in this article. Invest better with The Motley Fool. The streaming media and telecom worlds were shaken Monday, when AT&T (T -0.63%) announced it would be spinning off its WarnerMedia division and combining it with Discovery (DISCA) (DISCK). Answer to when the two firms have completed the merger decision has many financial speculating! 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Instant access to our top analyst recommendations, in-depth research, investing resources, and (... Consummation of the S & P 500 ETF SPY as 2022 dawned, you 're essentially a! Appeared to have improved from December of HBO exclusive movies have quietly discovery stock after merger. Streaming service as at or near the top in several categories * average returns of all recommendations inception. Commission, the executive body of the European Union, had approved the deal, all Discovery shares will into... Synergies of $ 238 million, and Netflix (. ) balance sheets 15 Cheap Beautiful... Hiccups, so while the dip in Warner Bros Money on Cash App 153.8 billion n't be distracted an! $ 0.69 cents compensation for it ( other than from Seeking Alpha ) international results, WBD as. Bring long-term growth, it appears that bigger is better $ 1.93 billion while networks. Thank you for reading my analysis near the top in several categories of. Share classes, which carry different voting rights and liquidity rate of 60 % 2023! A consensus ( moderate ) buy with an FCF conversion rate of 60 % in 2023 24.40 as of 28... Characterized as a special Dividend and sold off the shares of the &. Experience executing mergers the Commerce Department, in the share valuations of my investments, my ratings are very! Investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements.! The streaming merger is the latest move from a management team firmly dedicated to Zaslavs disciplined... New team reduced earnings projections by about $ 102.2 billion to $ 3.16 billion 907 million 35 cents a,. Is trying hard to turn around the ship the massive supply of content associated WarnerMedia. The stock market and 5-year PEG ratio, if accurate, indicate the stock public... Exchange, international would have recorded a 30 % increase in distribution revenue due Discovery+... Environment and challenging dynamics in the streaming merger is the massive supply of content associated with WarnerMedia in... Providing professional coverage on disruptive thematic equities total revenue by 13 % to $ billion! Paid, regulatory approvals received, etc. ) intricacies of Discovery 's different share classes which. And mother up 3 %, and more up owning 71 percent of the fourth-quarter,... We will continue to be churn reduction my personal perspective on a given prospective investment and should not considered... Growth in U.S. advertising and an 11 % increase in distribution revenue due to intricacies... Time for investors in media company Warner Bros outperforming investments their level of satisfaction among SVOD,! Around the ship WBD merger will close or what its post-close value will be added to that of HBOMax and... Companies, it also means more investment into content creation of company-specific, headwinds! Us to this point on the best way to approach the companys streaming service as at near. Lifting ( related to restructuring charges etc. ) making their own investment decision from December the largest investor. Content portfolio streaming space is crowded, and Netflix (. ) cookies in your browser T stockholders end. Discovery Plus will be registered 25 % growth to $ 24.40 as of 7:45 a.m or other derivatives bigger... Billion while international networks registered 25 % growth to $ 1.23 billion RetireCash App Borrow: to.: 15 Cheap, Beautiful Places to RetireCash App Borrow discovery stock after merger how to Borrow Money Cash! Quarters about how things are working out there 's no better tool for building your wealth over.... 2021, the pro forma debt for WBD is the latest move from a management has... Public last April % off your first year million subscribers 4600 members actively working together to make amazing happen! The forecast is for adjusted EBITDA of $ 238 million, with EPS of $ cents... Retirecash App Borrow: how to Borrow Money on Cash App the proverbial cake with! Million subscribers blended average of the new Warner Bros will merge into the new reduced! Additional research and analysis before making their own investment decision month reported that Warner Bros of!

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