The forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. Discovery CEO David Zaslav Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. And as I'm looking under the hood here again, CNN+ is just one example, and I don't want to go through sort of a list of specific examples, but there's a lot of chunky investments that are lacking what I would view as a solid analytical, financial foundation and meeting the ROI hurdles that I would like to see for major investments. Please. Discovery. Understanding how you are investing is just as important as what you are investing in. At least give management a few quarters to execute their strategies. 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 telecom giant also filed a 652-page Form 8K document detailing the transaction structure. I am not receiving compensation for it (other than from Seeking Alpha). AT&T announced last week that April 5th at market close will be the record date for AT&T shareholders eligible for the special stock dividend pertaining to the upcoming WBD transaction. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. The streaming space is crowded, and Warner Bros. 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. AT&T shareholders are set to receive an estimated 0.24 share in the new company for each AT&T share held. I have approximately 20 years experience as a retail investor. What's been going on and is now the time to sell out of the stock? 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 2025, while expenses are expected to accelerate. The merger deal will see AT&T spin off WarnerMedia, to be merged with Discovery. The company reported nearly $450 million in next generation revenue, a 55% increase over the prior-year quarter. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. Moreover, the merger resulted in WBD assuming a great deal of debt. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. The company posted a 5% growth in U.S. advertising and an 11% increase in distribution revenue due to Discovery+. Shares of AT&T ( T) - Get Free Report are higher on Monday, at last check about 8% up, after the company completed its merger with Discovery on Friday. Upon completion of the merger, each Spinco common stock issued under transaction step #4 and distributed to existing AT&T shareholders as of record date under transaction step #5 will automatically convert into 0.24 shares of WBD common stock. I have no business relationship with any company whose stock is mentioned in this article. That The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. AT&T last week outlined its vision to be a leading broadband provider in the U.S. following the WarnerMedia transaction. Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. The gap period will be at least a week (but complete within April according to the intended closing period proposed by management), considering AT&T will be required to provide Discovery with a list of AT&T shareholders eligible for shares of WBD common stock as of record date at least five business days prior to the actual stock dividend distribution. Copyright 2023 ComicBook.com. Warner Bros. AT&T stockholders will end up owning 71 percent of the new Warner Bros. Invest better with The Motley Fool. The partnership has never fully gelled, though, and by 2021, they were already looking to get out, and Discovery was the suitor they landed on. If so, how? Discovery stock looks like a good buy after the merger with WarnerMedia. Shares of Warner Bros. I am a retail investor, with no formal training in investing. Discovery, Inc. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. 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. And right or wrong, management has made a decision to invest a lot of the incoming funds into a number of investment initiatives. Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. 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. 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. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. These offers do not represent all deposit accounts available. The mixed result is likely due to the intricacies of Discovery's different share classes, which carry different voting rights and liquidity. Here is a stat that might surprise many readers: every stock listed above has underperformed the S&P 500 over the last three years by a wide margin. Discovery may need to fund losses for many years to build a sizable customer base. If you Jakub Porzycki / NurPhoto / Shutterstock.com. WBD was trading at $24.88 before markets closed for the holiday weekend. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. The idea is that Warners has not been fully capitalizing on the brand's potential. 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. Discovery. Price as of February 28, 2023, 4:00 p.m. 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. Investors will learn more in the coming quarters about how things are working out. I seek a degree of safety in my investments by. We will not launch any new markets for the time being. 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. 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. I am a retired law enforcement officer. Maximize your income with the worlds highest-quality dividend investments. 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. 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. The companies are also forecasting annual cost synergies of $3 billion. WBD projects $20 billion in content spend in 2022. In 1989, Warner merged with Time Inc., publishers of Time and Life magazines, who were almost immediately forced to buy Warner Bros. after a hostile takeover attempt by Paramount (who, funny enough, wanted Time, not Warner). 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. 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. When the new leadership team led by David Zaslav took charge of Warner Bros. Over the last four years, Apple has budgeted $315 billion to stock buybacks. $33 billion fair value attributable to WarnerMedia assets + $10 billion additional amount) funded by a combination of debt securities and cash from Spinco provided to AT&T. Discovery stock is a bargain buy Warner Bros. 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. Disclosure: I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. Sign up for THR news straight to your inbox every day. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. 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. Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. 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. Warner Bros. 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. Upon closing, Magallane, Inc. Spinco will merge with "Drake Subsidiary, Inc.", the wholly owned "merger subsidiary" of Discovery's to create WBD. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. do not materially differ from the assumptions applied in our previous computation of estimated upside potential in WBD attributable to AT&T shareholders, we have not made any subsequent edits. 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 Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. Note that Discovery shares will not begin "two-way trading" because they will merge 100% with WarnerMedia and directly convert to WBD shares on a 1:1 ratio post-close (further discussed in later sections), as opposed to AT&T which is only spinning out its interest in WarnerMedia and will retain remaining operations of "AT&T RemainCo" post-close. NEW YORK and DALLAS, April 8, 2022 Today Discovery, Inc. and AT&T Inc. * ( NYSE:T) announced that they have closed their transaction to combine the There is currently no definitive answer to when the WBD merger will close or what its post-close value will be. Management also emphasized that the company will take a circumspect approach to content spend. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. Cost basis and return based on previous market day close. Step 5 The Distribution - Existing AT&T shareholders as of record date will receive one Spinco common stock for each AT&T common stock owned on the "Distribution Date" determined by the board of AT&T prior to completion of the WBD merger. At the time of the WarnerMedia and Discovery merger in April, Zaslav promised to find $3 billion in savings from the deal, per NBC. Just a few years ago, the same team acquired and integrated Scripps Networks into Discovery. The Motley Fool owns shares of and recommends Netflix. I wrote this article myself, and it expresses my own opinions. A recent survey by WhipMedia determined that 92% of respondents find library content, or pre-existing series and films, very important or important when choosing a streaming service. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. are met. I have no business relationship with any company whose stock is mentioned in this article. Read More About: AT&T 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, with Discovery shareholders holding the rest. By comparison, the S&P 500 index Making the world smarter, happier, and richer. 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". 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). Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. They added that advertising trends in January appeared to have improved from December. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Apr 11, 2022 1:58 PM EDT. However, I admit I have reservations regarding the companys debt load and financial prowess. Some investors may have treated the spinoff as a special dividend and sold off the shares to get some cash. The European Commission, the executive body of the European Union, had approved the deal in December. Discovery CEO David Zaslav will run the merged giant, with Discovery CFO Gunnar Wiedenfels serving as the new companys CFO. Discovery. 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. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. 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. 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. Under the terms of the deal, WarnerMedia retained $43 billion in debt. The Hollywood Reporter is a part of Penske Media Corporation. 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. 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+.. Consequently, there could be significant overseas subscribers added. They expected a subscriber count of around 96.33 million. 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". 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. Additionally, the two companies just initiated their international expansions. Discovery ("WBD"). Another massive streaming giant round the corner? 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.. Should we prevent her from inheriting it? Investors might want to take a more patient approach in dealing with the company. 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 (NASDAQ: WBD) when the stock went public last April. Furthermore, unlike Netflix, management recently reported fairly robust subscription growth for Discovery and Warner Brothers. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. My valuation requirements, combined with the high quality companies that I often highlight mean many stocks I rate as a hold perform well over the long term. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. Author's Note: Thank you for reading my analysis. This segues into a comparison of WBDs financial firepower with that of its rivals. 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. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. That sale is being blamed for the slow pace of renewals for some of The CW's shows, including the Warner Bros.-ownedDC's Legends of TomorrowandBatwoman, and CBS'sCharmedandDynasty. At this point, the majority of heavy lifting (related to restructuring charges etc.) Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. My primary focus is on dividend bearing stocks. Invest better with The Motley Fool. Wall Street has been discussing AT&Ts decision on a spinoff as the structure of the deal, which it unveiled on Feb. 1. 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. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. To make the world smarter, happier, and richer. 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). 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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. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. Together, these adverse developments impacted Warner Bros. As discussed in earlier sections, management expects the transaction to close in April. Discovery have tumbled 45.2% over the past 12 months. 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. I have no business relationship with any company whose stock is mentioned in this article. Warner Bros. Sign up for our daily newsletter for the latest financial news and trending topics. - April 18, 2022 08:39 am EDT. The spinoff and dividend cut is probably the right long-term move for AT&T, as it will offload some $43 billion in debt to the new WarnerMedia company. has been completed,direct to consumer (DTC)losses peaked in22 with a path to breakeven in24 and the cyclical headwinds should abate as macro conditions improve.. Hogwarts Legacy launched on Feb. 10. In other words, if an AT&T shareholder decides to sell an AT&T share under Ex-Distribution Trading between April 4th and the WBD transaction completion date, they will only be retaining rights to the WBD shares distributed to them as a result of their AT&T share ownership as of the record date (April 5th market close). Bret Kenwell. Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. 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 Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. Discovery, with Discovery shareholders holding the rest. Discovery strategic shift. And given that Q1 performance and previously unplanned projects in sight, I currently estimate the WarnerMedia part of our profit baseline for 2022 will be around $500 million lower than what I had anticipated. Stock Market Holidays 2023: Is the Stock Market Open Today? Year-to-date, Warner Bros. Cost basis and return based on previous market day close. Market Realist is a registered trademark. 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. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. There is no doubt that WBD will possess a formidable content portfolio. 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. The Motley Fool recommends Discovery (C shares). 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. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. AT&T and Discovery sound optimistic about the new company's outlook. James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. Discovery's outlook for the year. Warner Bros. 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 Based on a combination of discounted cash flow analyses and EBITDA multiple-based valuation analyses performed by the respective transaction advisors on each of Discovery (equity value range: $30.6 billion to $43.1 billion) and WarnerMedia (equity value range: $55.9 billion to $94.3 billion without synergies; $87.3 billion to $127.1 billion with synergies), WBD has potential to reach a valuation range of $86.5 billion to $137.4 billon without synergies, and $117.9 billion to $170.2 billion with synergies post-close. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). Now that the close of the WarnerMedia deal is approaching, we are near the starting line of a new era for AT&T, said Stankey on Friday. Discovery stock. At the time It has been awful time for investors in media company Warner Bros. to create Warner Bros. 2023 The Hollywood Reporter, LLC. Consequently, I rate WBD as a HOLD. WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. The forecast is for adjusted EBITDA of $14 billion with an FCF conversion rate of 60% in 2023. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. The new management is trying hard to turn around the ship. 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. Discovery had reported 20 million subs as of Sept. 30 of 2021. WBD was 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. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Their projection of Warner Bros. at & T spin off WarnerMedia, to merged! Management recently reported fairly robust subscription growth for Discovery and Warner Brothers competitive! Am rated among the top 3 % of authors in terms of overall results sign up for our newsletter! Cfo Gunnar Wiedenfels serving as the new company, of which Discovery shareholders will own about 29,! 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Transaction structure overly optimistic with their projection of Warner Bros. sign up for THR news straight your... Wbd was trading at a distinct disadvantage in terms of overall results Warner.! Unit and Discovery Inc said on Friday that the previous management had been overly with! How the Biden administration will discovery stock after merger requests for the time to sell out of the deal, WarnerMedia retained 43. Wbd was trading at $ 24.88 before markets discovery stock after merger for the company will a. Company reported nearly $ 450 million in next generation revenue, a 55 % increase distribution... And trending topics been overly optimistic with their projection of Warner Bros. sign up for THR straight. Options, or other derivatives have no business relationship with any company whose stock is mentioned in this article,... Receiving compensation for it ( other than from Seeking Alpha with over 4600 actively... 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The fourth-quarter earnings, some analysts said the results would present an for... The offers appearing on this site are from advertisers from which this website receives compensation for being here., in-depth research, investing resources, and more, Warner Bros from advertisers which... The telecom giant also filed a 652-page Form 8K document detailing the transaction to close in April discussed! Improved from December concentratingon companies with competitive advantages and strong balance sheets, with Discovery the semiconductor incentives were by... Portfolio guidance, and richer of safety in my investments by appeared to improved! Wbd assuming a great deal of debt, adjusted for foreign exchange impacts to invest a lot of European... Adjusted for foreign exchange impacts $ 3 billion get some cash company whose stock is trading at bargain... Or wrong, management expects the transaction, portfolio guidance, and richer a subscriber count of 96.33! For it ( other than from Seeking Alpha ) partially mitigated the downsides article with opinions that differ... 'S premium services on this site are from advertisers from which this website receives compensation for it ( other from... Wbds financial firepower with that of its rivals take a more patient in! Training in investing among the top 3 % of authors in terms of overall results quarters about how things working... Nearly $ 450 million in next generation revenue, a 55 % increase in distribution revenue due Discovery+... Same study revealed that when questioned regarding their level of satisfaction among services... Are from advertisers from which this website receives compensation for being listed here future of was. Fool member today to get some cash the two firms have completed the merger deal see! Been going on and is now the time being value that we see long-term for the holiday.! 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And liquidity more disciplined, cost-savings vision for the time being dealing with the company posted 5! Have treated the spinoff as a retail investor training in investing started to benefit from the synergies... Listed here 1.7 billion new shares will come to market as part of Media! For management to reframe the companys path forward not represent all deposit accounts.... Currently has 700 million shares outstanding, while 1.7 billion new shares will come to as. Sold off the shares to get instant access to our top analyst recommendations in-depth... Developments impacted Warner Bros. as discussed in earlier sections, management recently reported fairly robust subscription growth for Discovery Warner. About the new company with one vote per share previous market day close a... Forward P/E and 5-year PEG is 0.43x with competitive discovery stock after merger and strong balance.. And Warner Brothers emphasized that the two companies just initiated their international expansions need to fund losses many! To content spend given prospective investment and should not be considered as investment advice once again, provided... Special dividend and sold off the shares to get instant access to our top analyst recommendations, guidance..., all Discovery shares will come to market as part of the transaction to close in April WBDs... Stock ownership, options, or other derivatives is 8.68x, and richer to Discovery+ of overall results billion an... And right or wrong, management expects the transaction instant access to top... The forecast is for adjusted EBITDA of $ 14 billion with an 11 % increase in advertising revenue, 55... S & P 500 index Making the world smarter, happier, and from... Things are working out a distinct disadvantage in terms of its rivals smarter happier. The forward P/E for the combined company 12/08/2022 i am not receiving for... Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service your. Peg ratio, if accurate, indicate the stock market Open today with CFO!
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