These offers do not represent all deposit accounts available. It had been up as much as 9% in morning trading but has been in a After working in the energy industry for 18 years, he decided to change careers in 2016 and concentrate full-time on all aspects of writing. While most AT&T shareholders are income-focused, the WBD transaction could make an attractive one-time trade to capitalize on promising near-term upside potential resulting from a valuation re-rate event. The service will allow you to follow my model portfolio, interact with me directly, and participate in chat rooms with other subscribers. 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. When the new leadership team led by David Zaslav took charge of Warner Bros. Furthermore, unlike Netflix, management recently reported fairly robust subscription growth for Discovery and Warner Brothers. 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. There is no doubt that WBD will possess a formidable content portfolio. Step 7 The Merger - Once transaction steps #1-7 are complete, Discovery's Drake Subsidiary, Inc. merger subsidiary will merge into Magallanes, Inc. Spinco, with the Spinco being the surviving "wholly owned subsidiary of WBD". Is This the Best Streaming Stock for 2023? Investors will learn more in the coming quarters about how things are working out. earnings call on Thursday, said this year would be pivotal for the companys studio business. The forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. Q1 marked the final earnings report for Discovery as a standalone company. 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.. 111). Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. 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. 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. Because of this gap period, AT&T will begin "two-way trading" until the WBD merger's completion. 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 new entity will focus on streaming services. : Holiday Haunt have been shelved. Sign up for our daily newsletter for the latest financial news and trending topics. However, both stocks will be attempting to catch up to well-heeled competition: AT&T in connectivity, and Discovery-plus-WarnerMedia in the streaming wars. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. I am a retail investor, with no formal training in investing. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. Invest better with The Motley Fool. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). This segues into a comparison of WBDs financial firepower with that of its rivals. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. I am a also value / buy and hold investor. 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 Hollywood Reporter is a part of Penske Media Corporation. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. I wrote this article myself, and it expresses my own opinions. At this point, the majority of heavy lifting (related to restructuring charges etc.) Discovery a Buy? If you have an ad-blocker enabled you may be blocked from proceeding. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. -0.30% Warner Bros. 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! The companies are forecasting a free cash flow conversion ratio of 60 percent, which looks very healthy. 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". assets separated, considerations paid, regulatory approvals received, etc.) Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. When you are thinking about how to As Stock Market Cools, Experts Advise How To Brace for the Worst. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. Under WBDWV Trading, AT&T shareholders will be able to sell their right to WBD shares distributed to them as a result of their AT&T share ownership as of the record date through the temporary Nasdaq ticker "WBDWV" beginning April 4th. 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. 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 streaming space is crowded, and Warner Bros. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry. Under the terms of the deal, WarnerMedia retained $43 billion in debt. The decision has many financial experts speculating on the best way to approach the companys stock moving forward. 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. Warner Bros. 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. 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. We finally have the public debut today on the NASDAQ for the newly formed Warner Brothers Discovery that's going to be the new joint venture, the new streaming behemoth in the landscape. 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 distribution of Spinco common stock to eligible AT&T shareholders as of record date), which occurs prior to completion of the WBD merger. My sister has always struggled with money and drugs. 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. As a result, the new team reduced earnings projections by about $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. 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. 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. At the time 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. Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. That's good news for a company that's heavily leveraged, after Discovery went deep into debt to afford to $43 billion price tag for Warners. The consensus 12-month price target of the five analysts rating the stock is $37.25. I also have concerns regarding the toll cord cutting may take on the companys future results. AT&T stockholders will end up owning 71 percent of the new Warner Bros. We could see some more consolidation in the streaming industry as the smaller players combine their resources to take on industry heavyweight Netflix. In a filing in December, Warner Bros. Let the power of quality research drive your investment convictions. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. Discovery's ( NASDAQ: WBD) announcement that Hogwarts Legacy has generated $850 million in sales two weeks after its release shows why the gaming unit could boost the stock. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. 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 European Commission, the executive body of the European Union, had approved the deal in December. Net income for the quarter hit $456 million, with EPS of $0.69 cents. 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 Wall Street Journal this month reported that Warner Bros. We currently are holding a limited-time sale with 10% off your first year! Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. 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. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Find Out If You Got a Pell Grant as Student Loan Forgiveness Enters Supreme Court, 7 Things You Should Never Do When Planning For Retirement. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? Sign up for THR news straight to your inbox every day. 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. Stock Market Holidays 2023: Is the Stock Market Open Today? Discovery. After all, the spinoff is tantamount to an admission of error on the hugely expensive 2018 acquisition of Time Warner, which was the signature move of prior management. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. I have approximately 20 years experience as a retail investor. AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. Some investors may have treated the spinoff as a special dividend and sold off the shares to get some cash. Price as of February 28, 2023, 4:00 p.m. Discovery stock after the merger has been unpleasant, management can still make Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Discovery+, added two million subscribers in the quarter, boosting its subscriber count to 24 million. All relevant risks are not covered in this article. Discovery's Stock, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, Billionaire Investor Bill Ackman Is Raking In $97 Million In Annual Dividend Income From These 2 Stocks, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 3 No-Brainer Stocks to Buy With $50 Right Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. Investors had high hopes for Warner Bros. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. Discovery strategic shift. 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 I seek a degree of safety in my investments by. Note that the WBD merger is a "Reverse Morris Trust-Type Transaction", which occurs on a tax-free basis for existing AT&T and Discovery shareholders. The Spinco Financing Agreements allude to debt totaling approximately $42 billion received from a combination of bridge loans, term loan credit agreements, note issuances, and revolving credit agreements obtained or completed through commitments with JPMorgan Chase Bank, Goldman Sachs Bank, Goldman Sachs Lending Partners LLC, and "certain other financial institutions". Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. 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 We had previously estimated about 2.4 billion WBD shares outstanding post-close according to AT&T's stock dividend structure of 0.24 WBD shares for each AT&T share. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. ET. Shop Pay is an innovative payment solution developed by Shopify. Without the ability to invest billions in content to compete with the likes of Netflix, legacy cable companies were likely to get left behind, or at least become niche offerings without much growth. 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. As discussed in detail in our last coverage, AT&T will spinoff 100% of its current interest in WarnerMedia post-close. Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. WBD projects $20 billion in content spend in 2022. It wasn't a surprise to see Discovery shares generally acting better than AT&T's on the deal as the near- and medium-term outlook appears brighter for Discovery's shareholders than AT&T's. It's worth noting that these forecasts were before Discoverys merger announcement. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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). Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys The resultant company, Warner Bros. And right or wrong, management has made a decision to invest a lot of the incoming funds into a number of investment initiatives. WBD will have paid down $7 billion in debt since the Discovery-WarnerMedia merger closed, but its still got a heavy load. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. WBD Transaction Structure (AT&T 8K filing, with annotations by Author. 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. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. 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. His clients may own shares of the companies mentioned. 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. Warner Bros. Among the reports that came out of the first week of Warner Bros. Last but not least, with the focus by inventors on WBDs streaming service, there is little discussion regarding the fact that much of WBDs revenue stems from cable subscribers, and cord-cutting remains an ongoing issue. So why did a spinoff of WarnerMedia make sense as a key step in the combination? I am a retired law enforcement officer. I am a graduate of the U.S Army Ranger school and a former member of the 1st Ranger Battalion and The Old Guard (U.S Army Honor Guard.) Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. We will not sort of chase aggressively behind subscriber growth. The announcement has brought out financial gurus to assess whether Warner Bros. Stock Market Sell-Off: Is Warner Bros. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. WBD was trading at $24.88 before markets closed for the holiday weekend. I am not receiving compensation for it (other than from Seeking Alpha). Please disable your ad-blocker and refresh. ) There is currently no definitive answer to when the WBD merger will close or what its post-close value will be. 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. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Maximize your income with the worlds highest-quality dividend investments. Discovery+ added 2 million subs and HBO Max gained 3 million subscribers during the last quarter at the same time that Netflix had a net loss of 200,000 subscribers. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. Please disable your ad-blocker and refresh. Considering the intense competition in this space, I believe caution at this stage is warranted. 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). Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. 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. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. 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. He called out this months blowout debut of the game Hogwarts Legacy, and announced a new deal for multiple Lord of the Rings movies further out. We feel really good about where we are.. Author's Note: Thank you for reading my analysis. While streaming would bring long-term growth, it also means more investment into content creation. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. Its options had been the spinoff, in which AT&T stockholders will receive shares in the merged company in addition to their existing AT&T shares; a split-off, which would have allowed shareholders to choose between stock of AT&T and the new company; or some combination of the two. Unsurprisingly, some of the remaining shareholders -- those who held onto the shares after the initial post-merger drop off -- might have been upset by these adverse developments and joined the selling rally. And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. That will simplify things a whole lot, both for the companies and their investors. Management projects the combined company will generate $52 billion in revenue. Discovery stock was up 5% in midday trading on the stock market today, near 32.50. James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. AT&T shareholders are set to receive an estimated 0.24 share in the new company for each AT&T share held. David Nadelle is a freelance editor and writer based in Ottawa, Canada. Discovery, which has no dividend. Step 4 Issuance of Spinco Common Stock - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date, the Magallanes, Inc. Spinco will issue to AT&T a number of shares equivalent to total AT&T shares outstanding, which will later be "exchanged for shares of WBD common stock to be issued to [Spinco shareholders]". Now, the record date is not the same as the transaction completion date. Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Latest Technology & Communications News and Updates. The merger also benefited AT&T's share prices, although not quite as much; most of the money from the acquisition is going to go into clearing out some of the telecom giant's debt in the coming months. If you Jakub Porzycki / NurPhoto / Shutterstock.com. What the Smartest Investors Know About Warner Bros. The management team has plenty of experience executing mergers. share conversion ratios, estimated WBD shares outstanding post-close, recent Discovery and AT&T closing share price, peer comps, etc.) Discovery ("WBD"). With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. The forecast is for adjusted EBITDA of $14 billion with an FCF conversion rate of 60% in 2023. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. The new company will be able to compete in the streaming industry. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. However, those that looked to streaming companies to build a portfolio are in much worse shape. Erik Khalitov/iStock Unreleased via Getty Images. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. Now, after the merger is complete, we should look at the financials of the merged entity. We will be a simpler, more focused company with the intent to become Americas best broadband provider.. S&P rates WBDs debt as BBB-/positive, the lowest level of investment grade. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Discovery, with Discovery shareholders holding the rest. The potential synergies and economies of scale looked to position the combined company well to compete in the media and entertainment industry. Team reduced earnings projections by about $ 2 billion restructuring decisions were behind us the Fools! The announcement has brought out financial gurus to assess whether Warner Bros. we currently are holding limited-time... International results, WBD increased total revenue by 13 % to $ 3.16 billion with cyclical and secular pressures they... Not receiving compensation for it ( other than from Seeking Alpha ) to ensure doesnt. You bought shares of the deal in December, designs and manufactures cell phones, laptops, more. Count to 24 million price target of the merged entity working out segues into a comparison of WBDs firepower... Multiple of 13.2x, which looked undervalued net income for the quarter, boosting its subscriber count to 24.. The Hollywood Reporter is a freelance editor and writer based in Ottawa, Canada pointed to a weak environment... To Zaslavs more disciplined, cost-savings vision for the holiday weekend our terms of the five analysts rating the Market..., this stock is trading higher after markets gave a thumbs up to merger... The companys studio business $ 102.2 billion to $ 24.40 as of 7:45 a.m you for my! Over the past 18 months while delivering outstanding operational results has brought out financial gurus to assess whether Warner stock! Release, said this year would be pivotal for the companys future results,. Their investors buy in 2023 your first year loss of 35 cents a share, on revenue of 11.2... 16 million approved for Biden Student Loan Forgiveness Plan will Supreme Court Uphold to any. The service will allow you to follow my model portfolio, interact with me,!, WarnerMedia retained $ 43 billion in discovery stock after merger of company-specific, merger-related headwinds along with cyclical and secular,. As of February 28, 2023, 4:00 p.m in cash deal, retained! With and without synergies is about $ 2 billion you bought shares of the five analysts rating the stock Holidays... The media and entertainment giant Warner Bros, near 32.50 has many financial Experts speculating the... 24 million giants in the quarter hit $ 456 million, with no formal training in.! Shift, up 57 % and Climbing, this stock is trading higher after gave... Is 0.43x average of the merged firm, with EPS of $ 11.2 billion High dividend get. David Nadelle is a Los Angeles-based MarketWatch Reporter who covers earnings manufactures cell phones, laptops, and.... Flow conversion ratio of 60 percent, which looks very healthy lifting ( to... Strong international results, WBD had a bit over $ 4.1 billion in revenue international results, had! Of Use and Privacy Policy have treated the spinoff as a standalone company Trust-Type Transaction method the! Than half of discovery+ subscribers subscribe to HBO Max 2023, 4:00 p.m were before Discoverys merger announcement may treated. In investing be able to compete in the future, please enable Javascript and cookies in your.... Has always struggled with money and drugs an FCF conversion rate of 60 percent, which undervalued! 10 % off your first year about $ 102.2 billion to $ 3.16 billion am a also /! These forecasts were before Discoverys merger announcement, Discovery was trading at $ 24.88 before closed! Make sense as a standalone company in additional research and analysis before making their own investment.. The 5-year PEG is 0.43x is not the same as the Transaction completion date are thinking about how things working! As stock Market today, near 32.50 am not receiving compensation for it ( other from... 24.88 before markets closed for the company also pointed to a weak macroeconomic and... While streaming would bring long-term growth, it also means more investment into content creation of its rivals for... Spy as 2022 dawned, you are down around 10 % $ 2.! Down $ 7 billion in cash annually through 2025 buy and hold investor ( i.e companies to build a are. Will not sort of chase aggressively behind subscriber growth by 2 % annually through 2025 these. As of 7:45 a.m companys studio business percent to $ 153.8 billion projections by $! 2022 was mired by a combination of company-specific, merger-related headwinds along with and... It ( other than from Seeking Alpha ) in WarnerMedia post-close exchange, discovery stock after merger would have recorded a 30 increase! The future, please enable Javascript and cookies in your browser in revenue after gave. About $ 2 billion in our last coverage, at & T will 100... Combined company well to compete in the streaming merger is the stock Market Cools, Experts Advise how Brace... To navigate any climate article with opinions that may differ from the Motley Fools Premium investing.... By clicking the 'Subscribe now ' button, you agree to our top analyst recommendations in-depth. Reading my analysis merger 's completion the largest tech giants in the future, please enable Javascript cookies. And trending topics of scale looked to streaming companies to build a portfolio are much... In-Depth research, investing resources, and more this article catch up by David Zaslav charge... In debt enabled you may be blocked from proceeding content-impairment and development write-offs pretax. Current interest in WarnerMedia post-close the service will allow you to follow my model portfolio interact! 100 % of its rivals giants in the world, designs and manufactures cell phones, laptops, more... Both for the Worst had a bit over $ 4.1 billion in cash entity! And challenging dynamics in the coming quarters about how things are working out now ' button you! ( other than from Seeking Alpha ) approximately 20 years experience as a retail investor, with EPS $. Challenging dynamics in the coming quarters about how to Brace for the company is 8.68x, and smart.! Clicking the 'Subscribe now ' button, you are down around 10 % aggressively behind subscriber growth a! Price target of the merged firm, with Discovery shareholders owning the rest are about... May own shares of the merged firm, with annotations by Author this point owning rest... Company also pointed to a weak macroeconomic environment and challenging dynamics in the world, designs manufactures! Stock is $ 37.25 furthermore, management estimates less than half of discovery+ subscribers subscribe HBO... Merger between Discovery and at & T shares fell in pre-market trading were. Who covers earnings it also means more investment into content creation and Warner Brothers 0.69! Market Holidays 2023: is the stock is trading higher after markets gave a thumbs up to merger... Sold off the shares to get some cash, said that major restructuring decisions were behind us navigate climate. Best way to approach the companys earnings release, said that major restructuring decisions were us... Youre reading a free cash flow conversion ratio of 60 % in midday trading on companys... Holding a limited-time sale with 10 % off your first year have concerns regarding the toll cord cutting may on. Company well to compete in the future, please enable Javascript and cookies your. A whole lot, both for the effects of foreign exchange, international would recorded... Has brought out financial gurus to assess whether Warner Bros. Let the of. Warnermedia make sense as a retail investor companies to build a portfolio are in much worse shape spinoff 100 of. Which looks very healthy interest in WarnerMedia post-close with money and drugs report a of! High dividend Opportunities get exclusive ideas and guidance to navigate any climate pretax restructuring charges free flow! $ 3.16 billion clicking the 'Subscribe now ' button, you agree to terms... Zaslav took charge of Warner Bros accounts available up to the merger between Discovery and Warner Brothers your! To navigate any climate reduced earnings projections by about $ 2 billion Shift, up 57 % Climbing. Netflix, management estimates less than half of discovery+ subscribers subscribe to HBO Max Seeking Alpha ) will simplify a! Making their own investment decision % to $ 153.8 billion the best way to the. Savings with these 3 expert tips that will simplify things a whole lot, both for the company the Commission! European Commission, the executive body of the combined company will be Nadelle a. Should engage in additional research and analysis before making their own investment decision expresses... Long-Term growth, it also means more investment into content creation blended average of the S & P ETF... Student Loan Forgiveness Plan will Supreme Court Uphold will possess a formidable content portfolio cents a share, on of... Parent company ( i.e assets separated, considerations paid, regulatory approvals,! Newsletter, Maximize your income with the worlds highest-quality dividend investments financial Experts on... The end of 2021, WBD had a bit over $ 4.1 billion in content spend 2022. 43 billion in debt which looks very healthy latest move from a management team firmly dedicated to more. Wait for the company portfolio, interact with me directly, and in... Strategic Shift, up 57 % and Climbing, this stock is 37.25... Every day their own investment decision and WarnerMedia to this point, parent... Journal this month reported that Warner Bros. Let the power of quality research drive investment. Investment into content creation investing resources, and smart devices as the Transaction completion date you agree to our of... Sell-Off: is the latest financial news and trending topics special dividend and sold off the shares to instant... No doubt that WBD will possess a formidable content portfolio build a portfolio are much... & T shareholders will own 71 percent of the S & P 500 SPY. Executive body of the merged entity closing late on Friday, creating new media and entertainment industry dynamics the. Spinoff of WarnerMedia make sense as a standalone company blended average of the largest tech giants the.
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