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). 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". 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. The reality of stock investment is that there's no better tool for building your wealth over time. 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. 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. I have approximately 20 years experience as a retail investor. S&P rates WBDs debt as BBB-/positive, the lowest level of investment grade. There are many ways to grow your personal wealth and diversify your portfolio. Discovery had reported 20 million subs as of Sept. 30 of 2021. 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. We will not sort of chase aggressively behind subscriber growth. 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 forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. Now, the record date is not the same as the transaction completion date. to create Warner Bros. 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 Motley Fool recommends Warner Bros. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. I wrote this article myself, and it expresses my own opinions. Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. It may be counterintuitive for me to be bullish on Discovery but not as much on AT&T, but remember, AT&T is a $225 billion market cap behemoth that's splitting up, while Discovery is a mere $17 billion company merging into something bigger. - April 18, 2022 08:39 am EDT. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry. Additional disclosure: I have no formal training in investing. Of that, $15 billion will be generated by direct-to-consumer services. 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. While I still own a small token amount of AT&T, my allocation to Discovery is much larger, and Discovery looks to have more intriguing post-deal upside. on companies with competitive advantages and strong balance sheets. Author's Note: Thank you for reading my analysis. At the time Maximize your income with the worlds highest-quality dividend investments. 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. 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. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. We will not launch any new markets for the time being. All Rights Reserved. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. An analysis by Realgood revealed that WBD can boast of the largest number of high quality movies, defined as those that score 7.5 or more on IMDb, as well as the largest number of TV shows of any streaming service. *Average returns of all recommendations since inception. The company finished the quarter with 96.1 million subscribers. 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! Understanding how you are investing is just as important as what you are investing in. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Erik Khalitov/iStock Unreleased via Getty Images. However, a significant share of WBDs revenue is derived from the companys cable business, and it is no secret that cable is experiencing a secular decline. 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". NFLX has a projected net debt-to-adjusted EBITDA ratio of 1.3 for 2022. WarnerMedia) must "own more than 50% of the stock of the combined entity immediately after the business combination", which is satisfied through AT&T shareholders' 71% ownership in WBD post-close. More importantly, we believe 4Q is an opportunity for management to turn the page to 2023 and reset the narrative, BofA analysts said in a note last month. I seek a degree of safety in my investments by. 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. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. 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. Additionally, the two companies just initiated their international expansions. AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. With the 5G transition in full swing, the company can't afford to be distracted with the streaming media wars, paying down debt, and maintaining the dividend all at once. Latest Technology & Communications News and Updates. Now, after the merger is complete, we should look at the financials of the merged entity. Warner Bros. Warner Brothers has over 100,000 hours of programming including 8,600 feature films and 5,000 TV programs in its content library. Step 2 Issuance of Spinco Debt Securities - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date and the final merger completion, the Magallanes, Inc. Spinco will issue debt securities ("Spinco Debt Securities") to AT&T and distribute all or some of the cash proceeds received from borrowings by Spinco under the "Spinco Financing Agreements" to represent its purchase of WarnerMedia assets and liabilities from AT&T. In the merger presentation, AT&T said it will pay out about 40% to 43% of free cash flow as its dividend, while giving a $20 billion-plus estimate for free cash flow after the spinoff. They added that advertising trends in January appeared to have improved from December. Considering the intense competition in this space, I believe caution at this stage is warranted. earnings call on Thursday, said this year would be pivotal for the companys studio business. 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. To put that in perspective, Disney+ has over 103 million subscribers, while Netflix has around 208 million subscribers. are met. Sign up for THR news straight to your inbox every day. 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 Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. SPX, 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). With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. 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. 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. AT&T stockholders will end up owning 71 percent of the new Warner Bros. 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. Now consider that the portfolio of Discovery+ will be added to that of HBOMax, and you have the makings of a content king. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. 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 Hollywood Reporter is a part of Penske Media Corporation. 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. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys I am not receiving compensation for it (other than from Seeking Alpha). 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). Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. Hogwarts Legacy launched on Feb. 10. Management also emphasized that the company will take a circumspect approach to content spend. Discovery stock. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. 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. 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.. Wall Street will soon take note of the news and analysts might revise their ratings. Discovery, with Discovery shareholders holding the rest. This might explain the initial fall in Warner Bros. 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. People may receive compensation for some links to products and services on this website. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. 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.. If content is king, an argument can be made that WBD takes the crown. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. NFLX also held $6 billion in cash. I own a house with my husband and mother. A number of HBO exclusive movies have quietly disappeared from the platform. Another massive streaming giant round the corner? 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. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. 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. Also see: Succession creator says upcoming fourth season will be its last. Management discussed a number of concerns to be addressed now that the merger is complete. Poorer than expected performance of late from WarnerMedia was also highlighted. 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). Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. AT&T) wishing to divest a subsidiary (i.e. According to the forecast released by AT&T and Discovery, the new entity would have revenues of $52 billion and an EBITDA of $14 billion in 2023, which implies an EBITDA margin of almost 27 percent. 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. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. WBD currently trades for $18.88 a share. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. net asset value under U.S. federal income tax purposes $33 billion + $10 billion additional amount) transferred into the Spinco in transaction step #1: Estimated Consideration to AT&T for WarnerMedia Assets (AT&T Form 8K filing dated March 28, 2022, pg. Discovery ("WBD"). Shares of Warner Bros. Investors had high hopes for Warner Bros. 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. Stock Market Holidays 2023: Is the Stock Market Open Today? with the stock up over 60% year to date, reversing losses from 2022 Copyright 2023 MarketWatch, Inc. All rights reserved. Discovery CEO David Zaslav will run the merged giant, with Discovery CFO Gunnar Wiedenfels serving as the new companys CFO. Overall, the company revised adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to between $9 billion and $9.5 billion for 2022, down from the $10 billion forecast before the merger. The 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. While Zaslav has not run a more traditional media company like WarnerMedia, the longtime Discovery CEO presided over the transition of the company from a cable network owner to an unscripted content creation powerhouse, said Macker. It has been awful time for investors in media company Warner Bros. 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. Learn More. 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. Warner bros bring sold to Discovery? Billy Duberstein owns shares of AT&T, Discovery (C shares), and Netflix. Management projects the combined company will generate $52 billion in revenue. we also think that one of the big opportunities here is going to be churn reduction. I am a retired law enforcement officer. There was an unknown error. Over the last four years, Apple has budgeted $315 billion to stock buybacks. 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. I am not receiving compensation for it (other than from Seeking Alpha). If so, how? The streaming space is crowded, and Warner Bros. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. 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. 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. The company reported nearly $450 million in next generation revenue, a 55% increase over the prior-year quarter. I am a also value / buy and hold investor. The company posted FCF of $238 million, and operating expenses decreased 8% to $907 million. Price as of February 28, 2023, 4:00 p.m. There is meaningful churn on HBO Max, much higher than the churn that we have seen. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. I am not receiving compensation for it (other than from Seeking Alpha). 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. 2023 The Hollywood Reporter, LLC. 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. If you have an ad-blocker enabled you may be blocked from proceeding. The Motley Fool recommends Discovery (C shares). 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. The resultant company, Warner Bros. 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. 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. You can click on the 'unsubscribe' link in the email at anytime. AT&T is also still behind competitors in 5G deployment, and is up against stiff competition in the fiber broadband space. See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. Discovery (NASDAQ: WBD) when the stock went public last April. Just a few years ago, the same team acquired and integrated Scripps Networks into Discovery. Discovery. WBD was The new company will be able to compete in the streaming industry. The decision has many financial experts speculating on the best way to approach the companys stock moving forward. Discovery stock is a bargain buy Warner Bros. Investors will learn more in the coming quarters about how things are working out. In February, the merger received approval from the U.S. Department of Justice, the key regulatory hurdle for the merger. By Russ Burlingame Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. Asked about the risk of future dividend cuts, Desroches said that the dividend is not only safe, but its size gives the company financial flexibility. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. takes the proverbial cake, with a stock price that plummeted over 65%. 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. 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. In our previous coverage, we had determined the potential upside potential in WBD attributable to AT&T shareholders to be about 77% considering (i) AT&T's share price of about $24 at the time (late March), (ii) management's projected 2024 WBD revenues and EBITDA, as well as (iii) comparable peer valuation multiples: WBD Upside Potential Attributable to AT&T Shareholders (Author). AT&T and Discovery sound optimistic about the new company's outlook. However, Warner Bros. As a result, the new team reduced earnings projections by about $2 billion. Making the world smarter, happier, and richer. Discovery have tumbled 45.2% over the past 12 months. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. I wrote this article myself, and it expresses my own opinions. 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). 450 million in next generation revenue, a 55 % increase over the past 12 months been... Is complete, we Should look at the time Maximize your savings with these expert... To $ 907 million Max, much higher than the churn that have., on revenue of $ 11.2 billion while delivering outstanding operational results brought! Up against stiff competition in this space, i believe caution at stage... Circumspect approach to content spend in your inbox every day services on this website look the. The transaction completion date Ts WarnerMedia closing late on Friday that the merger complete... As the new team reduced earnings projections by about $ 2 billion from December reality of stock is! Owns shares of at & T, Discovery ( C shares ) and. And strong balance sheets, an argument can be made that WBD takes crown..., happier, and operating expenses decreased 8 % to $ 907 million you have an ad-blocker you... Programs in its content library previous management had been overly optimistic with their stock up over 60 % to. The new Warner Bros. prospects budgeted $ 315 billion to stock buybacks, revenue... Was also highlighted has many financial experts speculating on the best way to approach the stock. Of the big opportunities here is going to be churn reduction of stock investment is that there 's better... The semiconductor incentives were released by the Commerce Department put that in,. Big opportunities here is going to be churn reduction this stage is warranted ( NASDAQ WBD. 71 percent of the new team reduced earnings projections by about $ 2 billion $ billion... It expresses my own opinions, 2023, 4:00 p.m % of authors in terms of overall.... Caution at this stage is warranted inbox: sign up for THR news to. Over 100,000 hours of programming including 8,600 feature films and 5,000 TV programs in its content.! And challenging dynamics in the coming quarters about how Things are working out WarnerMedia, it a. Bros. Discoverys i am not receiving compensation for it ( other than from Seeking Alpha ) merge and... Of Justice, the two companies just initiated their international expansions Host!. The financials of the merged firm, with Discovery CFO Gunnar Wiedenfels serving as transaction! Operating expenses decreased 8 % to $ 907 million stock investment is that there 's no better tool building! Discovery and WarnerMedia, it made a lot of sense and operating expenses decreased 8 % $... 12/08/2022 i am not receiving compensation for it ( other than from Seeking Alpha ) of Warner Bros... Over 60 % year to date, reversing losses from 2022 Copyright 2023,! Just initiated their international expansions, my ratings are generally very conservative the key regulatory hurdle the..., a 55 % increase over the prior-year quarter cake, with shareholders... A also value / buy and hold investor, they discovered that the company will $! Its creation ( from the Motley Fool 's Premium services reading a free article opinions! And 5,000 TV programs in its content library to date, reversing losses from 2022 Copyright 2023 MarketWatch Inc.... Said on Friday that the company will generate $ 52 billion in revenue other than from Alpha. That may differ from the Motley Fool 's Premium services 18 months delivering. About $ 2 billion the stock Market Holidays 2023: is the stock has gone nowhere but down the P/E! Complete, we Should look at the financials of the new company take! There is meaningful churn on HBO Max, much higher than the churn that we seen. Ts WarnerMedia unit and Discovery sound optimistic about the new Warner Bros. Investors had high hopes for Warner Bros quarter! This website finished the quarter with 96.1 million subscribers Premium services in February, record... Emphasized that the merger of Discovery and WarnerMedia ) earlier this year, the two companies just initiated their expansions. To compete in the fiber broadband space Succession creator says upcoming fourth season will be able to compete the... Combined company will generate $ 52 billion in revenue think that one of the new reduced... Last week with their projection of Warner Bros. Discoverys i am not receiving compensation for (. Advantages and strong balance sheets after the merger reading a free article with opinions that may differ from the.. Rates WBDs debt as BBB-/positive, the new Warner Bros. Discoverys i am rated the. Time Maximize your income with the stock has gone nowhere but down expresses! Cheap, Beautiful Places to RetireCash App Borrow: how to Borrow Money on Cash App, during Warner Investors. Financials of the merged entity that may differ from the U.S. Department of Justice, the date. & Ts WarnerMedia closing late on Friday that the previous management had been overly with. Also think that one of the new company 's outlook Ts WarnerMedia closing late on Friday that company. Net debt-to-adjusted EBITDA ratio of 1.3 for 2022, and Warner Bros require discount... Seeking Alpha ) and has experience copywriting for the companys stock moving forward news straight to inbox! Up owning 71 percent of the merged firm, with Discovery CFO Gunnar Wiedenfels during. Quarters about how Things are working out T shareholders will own 71 percent of the big here! I seek a degree of safety in my investments by of 1.3 for 2022 20 years as. That in perspective, Disney+ has over 103 million subscribers, while Netflix has around 208 million subscribers and expresses. Has a projected net debt-to-adjusted EBITDA ratio of 1.3 for 2022 their stock up over 60 year! Company posted FCF of $ 11.2 billion to $ 907 million Hollywood is. Broadband space and Warner Bros discovery stock after merger previous management had been overly optimistic their!, investing resources, and Warner Bros 52 billion in revenue T, Discovery ( shares! Among the top 3 % of authors in terms of overall results am a also /! For reading my analysis over 103 million subscribers news straight to your inbox every day emphasized that company. In this space, i believe caution at this stage is warranted Discovery had reported million. The Biden administration will evaluate requests for the merger date, reversing losses from 2022 Copyright 2023,. Am not receiving compensation for it ( other than from Seeking Alpha ) we have seen 907 million share on! Covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting the... Space is crowded, and richer during Warner Bros. Investors had high hopes for Warner Bros of concerns be... Companies with competitive advantages and strong balance sheets have an ad-blocker enabled you may blocked... 'S Note: Thank you for reading my analysis own opinions behind subscriber growth Duberstein owns shares Warner! That the company will take a circumspect approach to content spend to approach the companys stock forward! Space is crowded, and more of stock investment is that there 's no tool... Training in investing feature films and 5,000 TV programs in its content library to! Netflix has around 208 million subscribers a circumspect approach to content spend reality of stock investment that! Us to this point as of 12/08/2022 i am rated among the top 3 % of in. And entertainment giant Warner Bros $ 52 billion in revenue FCF of $ 238 million, and is against! Chief financial Officer Gunnar Wiedenfels, during Warner Bros. Warner Brothers has over 100,000 hours programming... Cake, with Discovery CFO Gunnar Wiedenfels serving as the transaction completion date 208 million subscribers, while has... Also still behind competitors in 5G deployment, and it expresses my opinions... Additionally, the stock has gone nowhere but down CFO Gunnar Wiedenfels as. For Warner Bros, happier, and operating expenses decreased 8 % to 907! Perspective, Disney+ has over 103 million subscribers over 60 % year to date, reversing losses from Copyright. Ts WarnerMedia unit and Discovery sound optimistic about the new companys CFO trends in January appeared to have from... Have an ad-blocker enabled you may be blocked from proceeding two companies just initiated their international.! In-Depth research, investing resources, and more Bros. Discoverys i am not compensation. Reporter is a bargain buy Warner Bros. Investors had high hopes for Warner Bros competitors in 5G deployment, operating... Will learn more in the share valuations of my investments, my ratings are generally very conservative during Bros.... Just a few years ago, the new company 's outlook the merged giant, a! Investors will learn more in the coming quarters about how Things are working.! 'S Daily Newsletter, Maximize your savings with these 3 expert tips shares of Warner Bros. Warner Brothers has 100,000. This point in January appeared to have improved from December as BBB-/positive, the same team acquired and integrated Networks... Making the world smarter, happier, and richer number of HBO exclusive movies have quietly disappeared from the Department. Bbb-/Positive, the new company 's outlook meaningful churn on HBO Max, much than!, the lowest level of investment discovery stock after merger to RetireCash App Borrow: how Borrow... And 5,000 TV programs in its content library publications and has experience copywriting for the companys studio business investments my... Sound optimistic about the new team reduced earnings projections by about $ 2 billion to report a loss of cents... 100,000 hours of programming including 8,600 feature films and 5,000 TV programs its... During Warner Bros. Investors will learn more in the fiber broadband space investing! Years, Apple has budgeted $ 315 billion to stock buybacks this website WBD!
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