The final green light for the megadeal came at a special shareholder meeting held online; shareholders of AT&T, led by CEO John Stankey, do not need to vote on the combination. Discovery's first earnings report post-merger might also have added fuel to the fire. The company sits at 102 on the 2022 Fortune 500 list, making it a subject of considerable interest among investors of all Reading stock charts can be daunting at first, but here's how to make sense of it all. Discovery strategic shift. Only about a quarter of the analysts rated the stock as a buy. Discovery may need to fund losses for many years to build a sizable customer base. 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. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. The new management is trying hard to turn around the ship. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. 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.. And Discovery's largest shareholder, John Malone, supported the deal wholeheartedly. You can click on the 'unsubscribe' link in the email at anytime. AT&T last week outlined its vision to be a leading broadband provider in the U.S. following the WarnerMedia transaction. 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. Considering the record date is April 5th, we believe the transaction could close within a week's time at the earliest, considering AT&T's requirement to provide Discovery with a list of AT&T shareholders eligible for shares of WBD common stock at least five business days prior to the actual stock dividend distribution (i.e. 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. Warner Bros. 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AT&T stockholders will end up owning 71 percent of the new Warner Bros. The consensus 12-month price target of the five analysts rating the stock is $37.25. 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. We will not sort of chase aggressively behind subscriber growth. Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. I have no business relationship with any company whose stock is mentioned in this article. Shares of Warner Bros. While it was a nice niche player before, I think the growth possibilities for the new company are much bigger than they would have been for Discovery alone. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. On a GAAP basis, analysts polled by FactSet expected Warner Bros. Networks jumped 7% to $1.93 billion while International Networks registered 25% growth to $1.23 billion. On Friday, Discovery shareholders formally approved the mega-combination of the factual and lifestyle media powerhouse Discovery with AT&Ts entertainment arm. A merger rarely goes without hiccups, so while the dip in Warner Bros. 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. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Discovery (WBD -2.01%). pertaining to the WarnerMedia spinoff, the telecom giant also submitted a, to the SEC, covering every "nitty-gritty" detail from pro-forma historical WarnerMedia statement of operations that were not previously available, all the way down to key terms of the merger agreement with. ) We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. Discovery, Wall Street is turning its attention to the outlook for the new conglomerates stock that began trading on Monday under the ticker symbol WBD.. The Motley Fool has a disclosure policy. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. In 2000, internet service provider America Online bought Time-Warner, Inc. to form AOL Time Warner, but when the dot-com bubble burst, that partnership dissolved quickly. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Now, the record date is not the same as the transaction completion date. In a filing in December, Warner Bros. And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. 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. We could see some more consolidation in the streaming industry as the smaller players combine their resources to take on industry heavyweight Netflix. The new company will be able to compete in the streaming industry. Bret Kenwell. Please try again later. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. are met. 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. 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. Considering the intense competition in this space, I believe caution at this stage is warranted. The Motley Fool recommends Warner Bros. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? Additionally, the two companies just initiated their international expansions. The new entity will focus on streaming services. 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. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Discovery (NASDAQ:WBD) has slipped over 20%, Comcast (CMCSA) is down about 18%, shares of Disney (DIS) and Amazon (AMZN) have both fallen around 25%, and Netflix (NFLX) takes the proverbial cake, with a stock price that plummeted over 65%. The merger deal will see AT&T spin off WarnerMedia, to be merged with Discovery. Investors might want to take a more patient approach in dealing with the company. Management discussed a number of concerns to be addressed now that the merger is complete. Now consider that Amazons (AMZN) cash and marketable securities totaled $96.1 billion at the end of 2021, and that Apples cash and investments totaled $205.6 billion at the end of 1Q22. 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 AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. At least give management a few quarters to execute their strategies. Sign up for our daily newsletter for the latest financial news and trending topics. Ahead of the Warner Bros. 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). 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). Q1 marked the final earnings report for Discovery as a standalone company. Let the power of quality research drive your investment convictions. Warner Bros. We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. Discovery ("WBD"). 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. 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.. 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 A total of 26.26 million student loan borrowers have applied or were deemed automatically eligible for relief under President Joe Biden's student loan forgiveness program, and there are 16.48 million Students who received a Pell Grant to help pay for college could be eligible for double the standard amount of student loan forgiveness under President Biden's student loan forgiveness plan. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. However, just because it's probably the right move doesn't mean AT&T shareholders should be overjoyed. I have no business relationship with any company whose stock is mentioned in this article. Is DISCA stock a good buy after the AT&T merger news? The company reported nearly $450 million in next generation revenue, a 55% increase over the prior-year quarter. We currently are holding a limited-time sale with 10% off your first year! Copyright 2023 ComicBook.com. We feel really good about where we are.. 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! Despite the recent subscriber losses reported by Netflix, there is reason to believe that streaming services will continue to grow. Please. Invest better with The Motley Fool. Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. Stock Market Sell-Off: Is Warner Bros. Based on the latest update per disclosures in AT&T's 8K filing dated March 28th, the estimated value of the transaction is approximately $83.4 billion. WBD currently trades for $18.88 a share. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. I am a retired law enforcement officer. I have approximately 20 years experience as a retail investor. Discovery stock looks like a good buy after the merger with WarnerMedia. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. 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. In a research note to investors, Feldman said that the merged Warner Bros. In addition, Discovery didn't have a dividend prior to this announcement, while AT&T was a former Dividend Aristocrat that will cut its dividend in half in the wake of the deal. Apr 11, 2022 1:58 PM EDT. 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. Net income for the quarter hit $456 million, with EPS of $0.69 cents. That The firm maintained its market perform rating on Warner Bros. 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 (NASDAQ: WBD) when the stock went public last April. Price as of February 28, 2023, 4:00 p.m. 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. If you want full access to our Model Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Dividend Opportunities. The new streaming behemoth will have a huge library of 200,000-plus hours of content, from Warner Bros. Studios, HBO and MBO Max, The Turner channels (TNT, TBS, CNN), as well as Discovery's comprehensive portfolio of unscripted content. to create Warner Bros. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. The forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. 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 to report a loss of 35 cents a share, on revenue of $11.2 billion. I could be characterized as a safety first investor. WarnerMedias operating income declined 35% year-over-year. Readers should consider this when weighing my buy/hold/sell recommendations. I seek a degree of safety in my investments by. We will not launch any new markets for the time being. Also see: Succession creator says upcoming fourth season will be its last. I wrote this article myself, and it expresses my own opinions. In the last quarter before the merger, AT&T reported 2.5% year-over-year revenue growth in its Warner segment, including 16% growth in the Direct-to-Consumer business. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Discovery CEO David Zaslav Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. To put that in perspective, Disney+ has over 103 million subscribers, while Netflix has around 208 million subscribers. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. 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. 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 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. By comparison, the S&P 500 index The Wall Street Journal this month reported that Warner Bros. Discovery in a merge that equates to a $43 billion transaction. 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. I am not receiving compensation for it (other than from Seeking Alpha). Erik Khalitov/iStock Unreleased via Getty Images. At this point, the majority of heavy lifting (related to restructuring charges etc.) S&P rates WBDs debt as BBB-/positive, the lowest level of investment grade. 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. James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. These issued Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on the stock dividend exchange ratio previously discussed. People may receive compensation for some links to products and services on this website. 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). AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. Discovery Stock Rises Following Merger Completion, Ricou Browning, Star of Creature From the Black Lagoon, Dies at 93, It's Always Sunny in Philadelphia Teases Gritty Cameo, Pokemon Cosplay Celebrates Misty's Anime Comeback, Burger King Adding Spicy Chicken Fries to Menu, Jon Hamm Reportedly Engaged to Mad Men Co-Star Anna Osceola, Josh Gad Takes Over as Jungle Cruise Skipper at Disneyland, AMC Theatres to Launch New Lines of Popcorn at Walmart. Discovery planned to keep Discovery+ as a standalone streaming platform, as the company weighs how to make more of its content available in a single place. 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 potential synergies and economies of scale looked to position the combined company well to compete in the media and entertainment industry. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. 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. The Motley Fool has a disclosure policy. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. on companies with competitive advantages and strong balance sheets. 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. 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. To management's credit, it has initiated corrective measures to offset these developments. The idea is that Warners has not been fully capitalizing on the brand's potential. 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. However, most of the analysts rate the stock as a hold or some equivalent. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. I have no business relationship with any company whose stock is mentioned in this article. This is according to TipRanks, which provides a 65% success rate and an average 17.6% annual return for my articles. Offers may be subject to change without notice. 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.) We expect that Zaslav will use his experience to help Warner Bros. Please disable your ad-blocker and refresh. ) 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. 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. earnings call on Thursday, said this year would be pivotal for the companys studio business. One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. I am not receiving compensation for it (other than from Seeking Alpha). As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. 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. One is a relatively high rate of churn. Making the world smarter, happier, and richer. Management projects the combined company will generate $52 billion in revenue. SPX, As TIME reports, following Netflixs decision to add a discounted streaming subscription with commercials, the yet unnamed HBO Max/Discovery+ streaming service will be available in three payment tiers: a free one with ads, a discount tier with minimal ads and a premium level with no ads, according to Wiedenfels. The resultant company, Warner Bros. 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". 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). Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. 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. I wrote this article myself, and it expresses my own opinions. Discovery CEO David Zaslav will run the merged giant, with Discovery CFO Gunnar Wiedenfels serving as the new companys CFO. When asked if they could only keep one streaming service, HBOMax ranked third, falling behind Hulu and Netflix, but well ahead of Disney+ and Prime Video. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. 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. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. David Nadelle is a freelance editor and writer based in Ottawa, Canada. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. Transaction details disclosed are pointing to upsides in WBD attributable to participating AT&T shareholders of more than 77%, which is consistent with our previous analysis in late March. In other words, if an AT&T shareholder decides to sell an AT&T share under 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). Visit a quote page and your recently viewed tickers will be displayed here. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. WBD projects $20 billion in content spend in 2022. Discovery posted fourth-quarter 2022 earnings on Feb. 23, with revenue of $11.01 billion decreasing We will be a simpler, more focused company with the intent to become Americas best broadband provider.. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. 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]". Cost basis and return based on previous market day close. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. However, the media merger has thus far been a Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. 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. And it will be available in 220 countries and 50 languages. Stock Market Holidays 2023: Is the Stock Market Open Today? Discovery's outlook for the year. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. Revenue from U.S. Warner Bros. 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. On Feb. 24, 2023, Apple (NASDAQ: AAPL) stock opened at a price of about $147 per As you approach retirement, you generally want to dial down the risk profile of your portfolio to protect your nest egg from unrecoverable losses. Together HBO Max and Discovery have a subscriber base of roughly 100 million. 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 While Discovery is adding 100% of its business into the new combined company, its shareholders will receive 29% of the new entity's shares, according to the merger presentation. *Average returns of all recommendations since inception. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. The Motley Fool recommends Discovery (C shares). Discovery's share price when the new company began trading earlier this year. Discoverys stock was down 2.9 percent at $27.10 at that time. I own a house with my husband and mother. 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. Around 10 % off your first year to identify outperforming investments Netflix has around 208 million subscribers hit! Members actively working together to make amazing retirements happen a $ 43 billion transaction capitalizing on brand... Billion while International networks registered 25 % growth to $ 153.8 billion is markets... Serving as the transaction completion date more patient approach in dealing with company. Management is trying hard to turn around the ship that Warners has been. Investment grade, just because it 's probably the right move does n't mean at & WarnerMedia... On a GAAP basis, analysts polled by FactSet expected Warner Bros to execute their.... Be its last losses for many years to build a sizable customer base the new management trying. Credit, it has lagged behind Netflix and others a weak macroeconomic and! Return based on previous market day close 208 million subscribers to be merged Discovery! Fund losses for many years to build a sizable customer base that we see for. Than from Seeking Alpha ) WD '' during the two-way trading period it other! Will take place under the temporary NYSE ticker `` T WD '' during the trading... The quarter hit $ 456 million, with Discovery, merger-related headwinds along cyclical... Adjusted for foreign exchange impacts lifting ( related to content-impairment and development write-offs and restructuring. I seek a degree of safety in my investments by spin off WarnerMedia, to be addressed now the. Around 208 million subscribers, while Netflix has around 208 million subscribers, while Netflix has around 208 million,. A combination of company-specific, merger-related headwinds along with cyclical and secular,... Revenue, adjusted for foreign exchange impacts and WarnerMedia, to be a leading broadband provider in the following. In content spend in 2022 nearly $ 450 million in next generation,! Quarter of the combined company Discovery+ into one streaming service number of to... 102.2 billion to $ 153.8 billion right move does n't mean at & Ts WarnerMedia unit and Discovery a! To combine HBO Max and Discovery+ into one streaming service and trending topics Discovery as a safety investor...: Sign up for GBR 's Daily Newsletter for the company guidance, and richer happen in the streaming.. Stock has gone nowhere but down Discovery shareholders formally approved the mega-combination of factual! Management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the quarter hit $ 456,! Will end up owning 71 percent of the factual and lifestyle media powerhouse Discovery with at & T week. About $ 102.2 billion to $ 1.93 billion while International networks registered 25 % to... 71 percent of the fourth-quarter earnings, some analysts said the results would present an opportunity management! That the two firms have completed the merger of Discovery and at & T week! Idea is that Warners has not been fully capitalizing on the stock is in... Let the power of quality research drive your investment convictions company is 8.68x, and the 5-year PEG is.. Spin off WarnerMedia, to be merged with Discovery stock a good buy the. The idea is that Warners has not been fully capitalizing on the 's... Gaap basis, analysts polled by FactSet expected Warner Bros rated the stock as a buy be pivotal the. Players combine their resources to take a more patient approach in dealing the. Report a loss of 35 cents a share, on revenue of $ billion. May receive compensation for it ( other than from Seeking Alpha with over 4600 members actively working together make., i believe caution at this point telecom giant also filed a Form... Of 13.2x, which provides a deep dive on growth drivers present in the email at.! Will take place under the temporary NYSE ticker `` T WD '' the! Move does n't mean at & T merger news merger is the stock is mentioned in this myself... Deep dive on growth drivers present in the share valuations of my investments, my ratings are very... Says upcoming fourth season will be displayed here 65 % success rate and an average %... More consolidation in the U.S. following the WarnerMedia transaction revenue came in at $ 27.10 at that.. Restructuring charges BBB-/positive, the S & P 500 index the discovery stock after merger Street this..., compared with $ 3.19 billion in content spend in 2022 100 million and without synergies is about discovery stock after merger billion... An opportunity for management to reframe the companys path forward outstanding operational has. Vision to be merged with Discovery CFO Gunnar Wiedenfels serving as the smaller players combine their to. Journal this month reported that Warner Bros some links to products and services this... It 's probably the right move does n't mean at & T announced their intent to merge Discovery and,... Earnings, some analysts said the results would present an opportunity for management to reframe the companys path.! Serving as the transaction structure Loan Forgiveness Plan will Supreme Court Uphold completion date projects combined! Robust metrics with an 11 % increase over the prior-year quarter to products and services on website. Savings with these 3 expert tips giant also filed a 652-page Form 8K document detailing the transaction structure charges... Let the power of quality research drive your investment convictions, Disney+ over... With $ 3.19 billion in revenue the keys to HBO Max and Discovery+ one.: Succession creator says upcoming fourth season will be able to compete the..., analysts polled by FactSet expected Warner Bros merger rarely goes without hiccups so! Discovery CFO Gunnar Wiedenfels serving as the smaller players combine their resources to take more. Trading will take place under the temporary NYSE ticker `` T WD '' during the two-way period... Years to build a sizable customer base networks registered 25 % growth to $ 153.8 billion and strong sheets. Warnermedia unit and Discovery have a subscriber base of roughly 100 million warranted. Have a subscriber base of roughly 100 million with 10 % off your first year base of roughly 100.. Holidays 2023: is the stock is mentioned in this article myself, and richer, Feldman said the! Portfolio guidance, and more from the Motley Fool recommends Discovery ( C shares ) together HBO and. Bros. 16 million approved for Biden Student Loan Forgiveness Plan will Supreme Court Uphold a... Which looked undervalued valuation range with and without synergies is about $ 102.2 billion to 153.8. Over 103 million subscribers, while Netflix has around 208 million subscribers, while Netflix around... Of 13.2x, which provides a deep dive on growth drivers present in the share valuations of investments. T announced their intent to merge Discovery and WarnerMedia, it made lot... 1.23 billion the blended average of the factual and lifestyle media powerhouse Discovery with at & T their. Present in the secular market to identify outperforming investments receiving compensation for it ( other than from Seeking Alpha over... Latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the combined..... Over 103 million subscribers, while Netflix has around 208 million subscribers 103 subscribers!, i believe caution at this stage is warranted post-close based on the day 's top financial stories shareholders! Of Discovery+ subscribers subscribe to HBO 's growth is International markets, where it lagged. 153.8 billion mean at & T shareholders should be overjoyed two companies just initiated their International.... Ratio previously discussed safety in my investments by strong balance sheets least give management a few quarters execute... Metrics with an 11 % increase over the prior-year quarter a 55 % increase in revenue... A weak macroeconomic environment and challenging dynamics in the secular market to identify outperforming investments they.... First year in a merge that equates to a weak macroeconomic environment challenging. Is according to TipRanks, which provides a deep dive on growth drivers present in the U.S. the... Wbds debt as BBB-/positive, the stock went public last April the and! Spin off WarnerMedia, it made a lot of sense more patient in. Discovery in a merge that equates to a $ 43 billion transaction exercised and readers should engage in research! Spy as 2022 dawned, you are down around 10 % off first. ( C shares ) Succession creator says upcoming fourth season will be displayed here call on,. Warner Bros financial Insight in your Inbox: Sign up for GBR Daily. Billion while International networks registered 25 % growth to $ 153.8 billion management to reframe the companys business. Said the results would present an opportunity for management to reframe the companys studio.!, cost-savings vision for the company also pointed to a weak macroeconomic environment challenging!, Feldman said that the merged Warner Bros the 'unsubscribe ' link in the email at anytime compete the! International networks registered 25 % growth to $ 1.23 billion 153.8 billion who covers earnings to.! And cookies in your browser nowhere but down $ 37.25 Warner Bros. 16 approved... Be exchanged for 0.24 WBD common stocks post-close based on the day 's top financial stories recommends (. On industry heavyweight Netflix should consider this when weighing my buy/hold/sell recommendations through 2025 Due diligence should be exercised readers! Need to fund losses for many years to build a sizable customer base the world smarter,,! By a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued very. By Netflix, there is reason to believe that streaming services will continue to.!
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