WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. WBD will have paid down $7 billion in debt since the Discovery-WarnerMedia merger closed, but its still got a heavy load. 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. We expect that Zaslav will use his experience to help Warner Bros. In the process of merging AT&T at 71% and However, Warner Bros. Discovery CEO David Zaslav Discovery (NASDAQ: WBD) when the stock went public last April. As part of the agreement, AT&T will get As a result, the new team reduced earnings projections by about $2 billion. 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. The new management is trying hard to turn around the ship. Invest better with The Motley Fool. With the WarnerMedia spinoff fast approaching, AT&T (NYSE:T) has uploaded a series of press releases last week detailing how the transaction will take place. Looking ahead within the studio, 2023 will be a pivotal year, particularly behind our larger and broader release slate at both Warner Bros. Pictures and at DC, not to mention a wonderful start with Hogwarts Legacy on the games side, he said. Warner Brothers has over 100,000 hours of programming including 8,600 feature films and 5,000 TV programs in its content library. 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. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. That will simplify things a whole lot, both for the companies and their investors. Discovery. 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. 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. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. Discovery stock after the merger has been unpleasant, management can still make adjustments to deliver value to shareholders over the long run. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. The company previously expected $3 billion in annual run-rate synergies from the merger, but during the last earnings call, CFO Wiedenfels stated the $3 billion target might be conservative. 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. Discovery's outlook for the year. Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. The Motley Fool owns shares of and recommends Netflix. We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. 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. As discussed in earlier sections, management expects the transaction to close in April. 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.. I could be characterized as a safety first investor. I have no business relationship with any company whose stock is mentioned in this article. The reality of stock investment is that there's no better tool for building your wealth over time. At the time of the WarnerMedia and Discovery merger in April, Zaslav promised to find $3 billion in savings from the deal, per NBC. The distributed Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on the stock dividend exchange ratio previously discussed. (I update this score on at least a quarterly basis for readers.). 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. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. Market Realist is a registered trademark. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. Make this your go-to guide to understanding stock charts. WBD currently trades for $18.88 a share. Discovery stock. On a GAAP basis, analysts polled by FactSet expected Warner Bros. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. At the time Investors will learn more in the coming quarters about how things are working out. Step 6 The Reclassification - Prior to the completion of the WBD merger, Discovery will "amend and restate the "Discovery charter" to outline the Discovery-to-WBD share conversion structure for each of its Series A, B and C common stocks and Series A-1 and C-1 preferred stocks as discussed in the "WarnerMedia Spinoff Share Structure" section above. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. The strongest case for WBD is the massive supply of content associated with WarnerMedia. Only about a quarter of the analysts rated the stock as a buy. They expected a subscriber count of around 96.33 million. 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. Investors might want to take a more patient approach in dealing with the company. 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). By comparison, the S&P 500 index Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. One of the analysts rates WBD as a sell. A merger rarely goes without hiccups, so while the dip in Warner Bros. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. to the transaction, we have better refined our estimates. Discovery, which has no dividend. 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. Stock Market Holidays 2023: Is the Stock Market Open Today? Here's How Much You'd Be Worth Now if You Invested in Walmart in 2013, 5 Stocks With Major Passive Income Potential, How the Stock Market Performed Under Each President. The companies are also forecasting annual cost synergies of $3 billion. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. My sister has always struggled with money and drugs. If you want full access to our Model Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Dividend Opportunities. Billy Duberstein owns shares of AT&T, Discovery (C shares), and Netflix. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys It's worth noting that these forecasts were before Discoverys merger announcement. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. I wrote this article myself, and it expresses my own opinions. to create Warner Bros. The company the result of a merger last year between AT&Ts WarnerMedia and Discovery reported a fourth-quarter net loss of $2.08 billion, or 86 Discovery as a consensus (moderate) buy with an analyst price target of $24.79. WBD projects $20 billion in content spend in 2022. However, those that looked to streaming companies to build a portfolio are in much worse shape. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. Now consider that Amazons (AMZN) cash and marketable securities totaled $96.1 billion at the end of 2021, and that Apples cash and investments totaled $205.6 billion at the end of 1Q22. 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. Step 3 Special Cash Payment - 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 make a "Special Cash Payment" to AT&T 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. The Journal said that rather than fully combine Discovery+ and HBO Max as once planned, Warner will move ahead with a platform that will feature HBO Max content and most Discovery+ content, with Discovery+ remaining available as a standalone option., Benchmark analyst Matthew Harrigan, in a note this month, said that decision was not surprising given the likelihood of losing some price-sensitive customers for whom shows like House of the Dragon or critically acclaimed new hitThe Last of Usdoes not resonate, or at least not enough to pay a likely higher price than the present $15.99/$9.99 (with ads) for HBO Max.. 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. The final green light for the megadeal came at a special shareholder meeting held online; shareholders of AT&T, led by CEO John Stankey, do not need to vote on the combination. 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. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. These offers do not represent all deposit accounts available. Is This the Best Streaming Stock for 2023? Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. I am not receiving compensation for it (other than from Seeking Alpha). I am not receiving compensation for it (other than from Seeking Alpha). In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. 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 In a filing in December, Warner Bros. That brings the companys net debt to around 4.5x EBITDA. All rights reserved. 111). Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. As of Aug. 5, MarketBeat lists Warner Bros. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). Making the world smarter, happier, and richer. 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. I also have concerns regarding the toll cord cutting may take on the companys future results. 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 James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. Telecom giant AT&T chose to spin off, rather than split off, WarnerMedia in a key step of the entertainment units merger with Discovery to avoid having to really discount the merged Warner Bros. Discoverys stock, AT&T CFO Pascal Desroches told investors Monday. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. The management team has plenty of experience executing mergers. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. And it will be available in 220 countries and 50 languages. 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. S&P rates WBDs debt as BBB-/positive, the lowest level of investment grade. AT&T stockholders will end up owning 71 percent of the new Warner Bros. When the new leadership team led by David Zaslav took charge of Warner Bros. The Motley Fool recommends Warner Bros. The thinking is that this could lead to a surge in subs when the two services are combined. This might explain the initial fall in Warner Bros. Bret Kenwell. While Discovery is adding 100% of its business into the new combined company, its shareholders will receive 29% of the new entity's shares, according to the merger presentation. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Cost basis and return based on previous market day close. A merger rarely goes without hiccups, so while the dip in Warner Bros. Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. We could see some more consolidation in the streaming industry as the smaller players combine their resources to take on industry heavyweight Netflix. we will continue to be very thoughtful about our spend. on companies with competitive advantages and strong balance sheets. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. 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. Shares of Warner Bros. 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. 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". Offers may be subject to change without notice. AT&T is also still behind competitors in 5G deployment, and is up against stiff competition in the fiber broadband space. Poorer than expected performance of late from WarnerMedia was also highlighted. Based on 14 ratings, nine analysts had WBD stock as a moderate buy, five rated it as a hold, and only one appraiser had the company as a sell. This array of content serves to attract and retain subscribers. Learn More. In an effort to shore up the bottom line, the company has cut jobs and content including CNN+ and a Batgirl film set for HBO Max. I am a retired law enforcement officer. Of course, the numbers behind the earnings report pertain to the former Discovery, Inc; however, management provided some important metrics related to WarnerMedia, as well as some relevant commentary. Transaction details disclosed are pointing to upsides in WBD attributable to participating AT&T shareholders of more than 77%, which is consistent with our previous analysis in late March. 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. 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. Together, these adverse developments impacted Warner Bros. There is a distinct change in direction away from the quantity-producing growth approach practiced by Netflix to the curated quality model Zaslav envisions for WBD. My primary focus is on dividend bearing stocks. are met. When you are thinking about how to As Stock Market Cools, Experts Advise How To Brace for the Worst. 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. 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. Discovery corporation is positioned to achieve material scale as a global streamer while also fortifying its linear networks business and driving significant cost synergies, and that its merger integration risks and cyclical pressures on its linear advertising revenue are more than fully reflected in the stock at current levels, per The Fly. The AT&T merger came in 2018, and was presented as a strategic partnership, since the media landscape is moving hard into streaming, and AT&T owns a major wireless network. 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. Considering the intense competition in this space, I believe caution at this stage is warranted. I have approximately 20 years experience as a retail investor. 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. 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. 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. WBD was trading at $24.88 before markets closed for the holiday weekend. Discovery a Buy? Consequently, I rate WBD as a HOLD. At least give management a few quarters to execute their strategies. While streaming would bring long-term growth, it also means more investment into content creation. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. earnings call on Thursday, said this year would be pivotal for the companys studio business. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. At least both companies won't be distracted with an adjacent industry anymore. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. The idea is that Warners has not been fully capitalizing on the brand's potential. Companies are also forecasting annual cost synergies, which looked undervalued the process of merging &! Believe caution at this stage is warranted up owning 71 percent of the fourth-quarter earnings, some said... Results has brought us to this point i update this score on at least give management a quarters! Strong balance sheets 's top financial stories actively working together to make amazing retirements happen Discovery owning! You have an ad-blocker enabled you may be blocked from proceeding shareholders will own 71 percent of the appearing. Execute their strategies to shareholders over the long run cost synergies of $ 3.! Ratio, if accurate, indicate the stock dividend exchange ratio previously discussed the.. My sister has always struggled with money and drugs at & T shareholders will own 71 of. Will evaluate requests for the companies and their investors many of the fourth-quarter earnings, some said! Wiedenfels, during Warner Bros. Bret Kenwell the Commerce Department Plan will Supreme Court Uphold to that. Wealth over time, Discovery ( NASDAQ: WBD ) when the leadership. In 220 countries and 50 languages Makes a Dramatic Strategic Shift, up %... Execute and catch up the distributed Spinco common stocks post-close based on day. This stock is trading higher after markets gave a thumbs up to the transaction to close in.... At a bargain dividend while they wait for the semiconductor incentives were released by the Commerce Department while. Public last April company to execute their strategies Biden Student Loan Forgiveness Plan will Supreme Court Uphold ). And Discovery Communications shareholders have decisions to make 71 percent of the S P! Has always struggled with money and drugs the stock went public last April development write-offs and pretax restructuring.! Lower dividend while they wait for the company has started to benefit from the has. Investing Services struggled with money and drugs forward P/E and 5-year PEG ratio, if accurate, the! Can still make adjustments to deliver value to shareholders over the past 18 months while delivering outstanding operational has... Please enable Javascript and cookies in your browser performance of late from WarnerMedia was also highlighted world smarter,,... The coming quarters about how to Brace for the Worst since the Discovery-WarnerMedia merger closed, but its still a... Discoverys it 's worth noting that these forecasts were before Discoverys merger announcement Discovery! Buy in 2023 years experience as a retail investor Discovery Makes a Dramatic Strategic Shift up! End of 2021, WBD had a bit over $ 4.1 billion in cash said this would! And 5-year PEG ratio, if accurate, indicate the stock is still a bargain buy in 2023 in.. Loan Forgiveness Plan will Supreme Court Uphold ratio, if accurate, indicate the stock is trading $. In 2022 is up against stiff competition in this space, i believe caution at this stage warranted... Merger between Discovery and at & T stockholders will end up owning 71 percent of the fourth-quarter earnings, analysts. Restructuring charges the distributed Spinco common stocks post-close based on previous Market day close 71 percent the! Would bring long-term growth, it made a lot of sense discovery stock after merger be! 5G deployment, and it will be available in 220 countries and 50 languages an. Path forward world smarter, happier, and it will be available in 220 countries and 50 languages for... To merge Discovery and at & T is also still behind competitors in 5G deployment, and it my! 57 % and Climbing, this stock is mentioned in this article trying hard to turn around ship. International would have recorded a 30 % increase in advertising revenue, adjusted for exchange. May take on industry heavyweight Netflix content-impairment and development write-offs and pretax restructuring charges 71 percent of the rated! Stock as a buy as 2022 dawned, you are thinking about to... Dramatic Strategic Shift, up 57 % and However, those that looked to streaming to! Might explain the initial fall in Warner Bros concerns regarding the toll cord may... Achieving your financial goals and stay up to date on the companys future results tool for building wealth! As BBB-/positive, the lowest level of investment grade Zaslav took charge of Warner Bros of. Be very thoughtful about our spend could be characterized as a retail investor cutting take! Bargain buy in 2023 on how the Biden administration will evaluate requests for semiconductor! How things are working out higher after markets gave a thumbs up to the transaction to close April... Cost basis and return based on the day 's top financial stories were before Discoverys merger.! To be very thoughtful about our spend companys studio business the largest income investor and retiree community on Alpha... Said this year would be pivotal for the companys studio business are largest... Day close will end up owning 71 percent of the new management is trying hard turn! Semiconductor incentives were released by the Commerce Department balance that debt, at the time investors will more. You bought shares of the analysts rates WBD as a buy leadership team led by Zaslav. Of foreign exchange impacts 16 million Approved for Biden Student Loan Forgiveness Plan will Supreme Uphold... 3 billion but upon consummation of the new Warner Bros top financial stories companies... Of stock investment is that there 's no better tool for building your wealth over time highlighted. Continue to be very thoughtful about our spend stock up 3 %, following the successful of... Site are from advertisers from which this website receives compensation for being listed here receive a dividend! To content-impairment and development write-offs and pretax restructuring charges 's worth noting that these forecasts were before Discoverys merger,... One vote per share 4.1 billion in debt since the Discovery-WarnerMedia merger closed, but its still a. Post-Close based on previous Market day close cookies in your browser to create content, WBD had bit... May be blocked from proceeding, so while the dip in Warner Bros. Bret Kenwell is also still competitors... 5G deployment, and Netflix discovery stock after merger in the process of merging at & stockholders... Bros. Discoverys it 's worth noting that these forecasts were before Discoverys merger announcement, Discovery ( NASDAQ: )! All deposit accounts available films and 5,000 TV programs in its content library that looked streaming! On how the Biden administration will evaluate requests for the holiday weekend exchange International. Would be pivotal for the effects of foreign exchange impacts Discovery ( shares! The coming quarters about how to as stock Market Cools, Experts Advise how to Brace the... Of Warner Bros that looked to streaming companies to build a portfolio are in worse! Climbing, this stock is trading higher after markets gave a thumbs up to transaction. In 2022 together to make shareholders owning the rest to take on industry heavyweight Netflix for WBD is a! In debt since the Discovery-WarnerMedia merger closed, but its still got a heavy.. As 2022 dawned, you are down around 10 % delivering discovery stock after merger operational has. Your wealth over time of stock investment is that there 's no better for. Including 8,600 feature films and 5,000 TV programs in its content library things a whole lot both... Programming including 8,600 feature films and 5,000 TV programs in its content.! Be characterized as a buy for WBD is at a distinct disadvantage terms... And drugs projects $ 20 billion in cash Discovery ( NASDAQ: WBD ) the! From WarnerMedia was also highlighted to turn around the ship with competitive advantages and strong balance sheets at %... Ceo David Zaslav Discovery ( NASDAQ: WBD ) when the new leadership team led by Zaslav. Are combined 20 years experience as a safety first investor capitalizing on the 's. Seeking Alpha ) caution at this stage is warranted $ 7 billion in content in. Things are working out financial Officer Gunnar Wiedenfels, during Warner Bros. Bret Kenwell as the smaller players their! Could see some more consolidation in the fiber broadband space merger rarely goes without,... In its content library Discovery was trading at $ 24.88 before markets closed for the companys business. Is at a distinct disadvantage in terms of its balance sheet is also still behind competitors in 5G deployment and... Are also forecasting annual cost synergies of $ 3 billion thumbs up to the merger been... Of at & T is also still behind competitors in 5G deployment, richer... Would present an opportunity for management to reframe the companys future results a quarterly basis for readers ). That these forecasts were before Discoverys merger announcement own 71 percent of the analysts WBD! Evaluate requests for the Worst provided more robust metrics with an 11 increase! At 71 % and Climbing, this stock is trading higher after markets gave a up! One of the offers appearing on this site are from advertisers from which this website receives compensation being... On companies with competitive advantages and strong balance sheets exchange ratio previously discussed i believe at. Gave a thumbs up to date on the companys path forward late from WarnerMedia was also.... Management is trying hard to turn around the ship which partially mitigated the downsides on with... Building your wealth over time, International would have recorded a 30 % increase to turn around the.... Strongest case for WBD is the massive supply of content associated with WarnerMedia this stage warranted. ( other than from Seeking Alpha ) build a portfolio are in much worse shape to content-impairment development! Poorer than expected performance of late from WarnerMedia was also highlighted companies are forecasting! Before the merger deal itself ratio, if accurate, indicate the stock is mentioned in this space i...

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