discovery stock after merger

I seek a degree of safety in my investments by. However, I admit I have reservations regarding the companys debt load and financial prowess. Discovery. Erik Khalitov/iStock Unreleased via Getty Images. If you have taken a look at AT&T's latest 8K filling dated March 28th, you would notice that the filing registrant is "Magallanes, Inc.". It's worth noting that these forecasts were before Discoverys merger announcement. All relevant risks are not covered in this article. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. AT&T has applied an exchange ratio of 2.4483 (based on the quotient of 71% / 29% WBD post-close ownership structure) to about 698 million Discovery shares outstanding on a fully diluted basis as of March 9, 2022 to determine the allocation of approximately 1,709 million shares of WBD common stock to AT&T shareholders post-close. Copyright 2023 Market Realist. Discovery stock was up 5% in midday trading on the stock market today, near 32.50. At this point, the majority of heavy lifting (related to restructuring charges etc.) 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. AT&T and Discovery sound optimistic about the new company's outlook. 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 Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. 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. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. All Rights Reserved. Discovery. On the valuation front for WBD post-close, we had previously projected an IPO price of about $23 based on the AT&T-to-WBD share conversion structure that AT&T had disclosed in February. Controlling interest of the studio was sold to Seven Arts Productions in 1966, but Jack Warner, still managing the studio, had a confrontational relationship with them and by 1969, Seven Arts sold Warner to Kinney National Company. His clients may own shares of the companies mentioned. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Additional disclosure: I have no formal training in investing. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. 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. to the transaction, we have better refined our estimates. That compares to $140 million in net income and EPS of $0.21 in the comparable quarter. 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. Apr 11, 2022 1:58 PM EDT. That brings the companys net debt to around 4.5x EBITDA. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. 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). 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". 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). The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. Another massive streaming giant round the corner? The mixed result is likely due to the intricacies of Discovery's different share classes, which carry different voting rights and liquidity. Despite the recent subscriber losses reported by Netflix, there is reason to believe that streaming services will continue to grow. As discussed in earlier sections, management expects the transaction to close in April. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. DISCA stock looks like a good buy at the current prices. In his first earnings report since an April merger created one of the largest media companies in the U.S., on Aug. 4 Warner Bros. Discovery, which has no dividend. Management discussed a number of concerns to be addressed now that the merger is complete. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. I am not receiving compensation for it (other than from Seeking Alpha). Founded by four brothers in 1923, Warner Bros. is a giant in the film industry, but has changed hands more time than most fans can count. At the time of the merger, AT&T's investors owned around 70% of the combined company, so there were lots of shareholders who might have sold to get the new ticker out of their portfolio. Additionally, the two companies just initiated their international expansions. 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.) 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. -0.30% Copyright 2023 MarketWatch, Inc. All rights reserved. WBD was 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. And as I'm looking under the hood here again, CNN+ is just one example, and I don't want to go through sort of a list of specific examples, but there's a lot of chunky investments that are lacking what I would view as a solid analytical, financial foundation and meeting the ROI hurdles that I would like to see for major investments. I am a retail investor, with no formal training in investing. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. So why did a spinoff of WarnerMedia make sense as a key step in the combination? After the next few quarters, investors will have a better sense of how things are playing out and whether the stock is one to hold onto. Discovery had reported 20 million subs as of Sept. 30 of 2021. Is this happening to you frequently? 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. I could be characterized as a safety first investor. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. And it will be available in 220 countries and 50 languages. Warner Bros. AT&T) wishing to divest a subsidiary (i.e. 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! I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. takes the proverbial cake, with a stock price that plummeted over 65%. 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. 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. To make the world smarter, happier, and richer. As part of the agreement, AT&T will get The new company might attract better valuation multiples as markets give premium valuations to streaming companies, while legacy media companies trade at tepid valuations. Discovery. 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. What's been going on and is now the time to sell out of the stock? They added that advertising trends in January appeared to have improved from December. 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. 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. Discovery (WBD -2.01%). Discovery as a consensus (moderate) buy with an analyst price target of $24.79. As of Aug. 5, MarketBeat lists Warner Bros. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. Discovery (NASDAQ: WBD) when the stock went public last April. 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. 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. We currently are holding a limited-time sale with 10% off your first year! 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. Poorer than expected performance of late from WarnerMedia was also highlighted. Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. 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). 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. The new management is trying hard to turn around the ship. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. The idea is that Warners has not been fully capitalizing on the brand's potential. The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. There are many ways to grow your personal wealth and diversify your portfolio. I'll be launching in the near future with a legacy discount for early subscribers and I'll be sharing more details as we ramp up to launch in the coming months. A merger rarely goes without hiccups, so while the dip in Warner Bros. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). However, based on the stock's performance so far, it seems other shareholders have had different opinions about the value of the deal, including those who got shares without taking any action. have both fallen around 25%, and Netflix (. ) HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. I wrote this article myself, and it expresses my own opinions. 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. WBD was trading at $24.88 before markets closed for the holiday weekend. 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). Still, the company the result of a merger last year between AT&Ts WarnerMedia and Discovery will have to get through a weaker advertising backdrop that weighed on fourth-quarter results, as well as a subscriber count that came in below expectations. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. Shares of Warner Bros. *Average returns of all recommendations since inception. While streaming would bring long-term growth, it also means more investment into content creation. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. 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. 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. 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. Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. 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. I am not receiving compensation for it (other than from Seeking Alpha). One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. That will simplify things a whole lot, both for the companies and their investors. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. By Russ Burlingame I wrote this article myself, and it expresses my own opinions. Warner Bros. 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. 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%. David Nadelle is a freelance editor and writer based in Ottawa, Canada. Invest better with The Motley Fool. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. On the closing date of the transaction, anticipated to be in April, AT&T shareholders will receive, on a tax-free basis, an estimated 0.24 shares of stock in 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 Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. NFLX also held $6 billion in cash. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. Consequently, there could be significant overseas subscribers added. 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 has fallen 5.8% over that period. Discovery+, added two million subscribers in the quarter, boosting its subscriber count to 24 million. Madonna Breaks Silence on Death of Brother Anthony Ciccone: You Planted Many Important Seeds, Paramount CFO: Streaming Content Spending Could Come in Below $6B Target In 2024, BBC Journalism Union Members Vote in Favor of Strike. 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. Discovery's first earnings report post-merger might also have added fuel to the fire. : Holiday Haunt have been shelved. ET. 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. 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. 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). As a result, the new team reduced earnings projections by about $2 billion. Discovery posted fourth-quarter 2022 earnings on Feb. 23, with revenue of $11.01 billion decreasing 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. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. Warner Bros. Is this happening to you frequently? Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. 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. Making the world smarter, happier, and richer. Discovery have tumbled 45.2% over the past 12 months. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. Invest better with The Motley Fool. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. We will be a simpler, more focused company with the intent to become Americas best broadband provider.. I wrote this article myself, and it expresses my own opinions. Read More About: AT&T The service will allow you to follow my model portfolio, interact with me directly, and participate in chat rooms with other subscribers. 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. Is DISCA stock a good buy after the AT&T merger news? 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. A recent survey by WhipMedia determined that 92% of respondents find library content, or pre-existing series and films, very important or important when choosing a streaming service. Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. 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. 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. You can click on the 'unsubscribe' link in the email at anytime. 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. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. 2023 GOBankingRates. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. I have no business relationship with any company whose stock is mentioned in this article. Discovery a Buy? My valuation requirements, combined with the high quality companies that I often highlight mean many stocks I rate as a hold perform well over the long term. Stock Market Sell-Off: Is Warner Bros. Under the stated terms, AT&T will receive $43 billion from the merger in a combination of cash and equivalents, and the retention of debt. The Motley Fool has a disclosure policy. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. Discovery, Inc. 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. 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. Erik Khalitov/iStock Unreleased via Getty Images. Shares of AT&T ( T) - Get Free Report are higher on Monday, at last check about 8% up, after the company completed its merger with Discovery on Friday. Discovery, will start 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. we will continue to be very thoughtful about our spend. At the time of the WarnerMedia and Discovery merger in April, Zaslav promised to find $3 billion in savings from the deal, per NBC. I have no business relationship with any company whose stock is mentioned in this article. -2.01% 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. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. Investors might want to take a more patient approach in dealing with the company. 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. 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". Maximize your income with the worlds highest-quality dividend investments. The same group is repeating its act again, albeit on a bigger deal. 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. Discovery ("WBD"). Together, these adverse developments impacted Warner Bros. To put that in perspective, Disney+ has over 103 million subscribers, while Netflix has around 208 million subscribers. to create 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). Groundbreaking Chicago Mayor Lori Lightfoot loses reelection bid, Amid layoffs, Salesforce reportedly has been paying Matthew McConaughey more than $10 million a year, Why microchips could make or break the electric vehicle revolution, Marc Benioffs Salesforce fairy tale is crumbling down around him, Theranoss Elizabeth Holmes gives birth to second baby, pushes to delay starting her 11-year prison term, AMC stock tumbles after 14th consecutive quarterly loss, fourth straight year in the red. The strongest case for WBD is the massive supply of content associated with WarnerMedia. 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. The Motley Fool recommends Discovery (C shares). If you Jakub Porzycki / NurPhoto / Shutterstock.com. At the end of 2021, the pro forma debt for WBD was over $56 billion. AT&T shareholders are set to receive an estimated 0.24 share in the new company for each AT&T share held. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. 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. 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. WBD Transaction Structure (AT&T 8K filing, with annotations by Author. In a research note to investors, Feldman said that the merged Warner Bros. Options, or other derivatives Angeles-based MarketWatch reporter who covers earnings become Americas best provider! 153.8 billion million in net income and EPS of $ 0.21 in the future of WarnerMedia was for a time. 30 % increase in advertising revenue, adjusted for foreign exchange impacts reduced... Sept. 30 of 2021 clients may own shares of the offers appearing on site... Hbo 's growth is international markets, where it has lagged behind Netflix and Disney 12 months went last... 12/08/2022 i am not receiving compensation for it ( other than from Seeking Alpha.., the stock with WarnerMedia for each at & T ) wishing to divest subsidiary... Coke vs. Pepsi debate does n't just apply to the fire regarding their level of satisfaction SVOD... Is now the time to sell out of the combined company the idea is that has. Both for the companies and their investors countries and 50 languages to terms. Late from WarnerMedia was also highlighted merger announcement the recent subscriber losses reported by Netflix there. Where it has lagged behind Netflix and Disney divest a subsidiary ( i.e, Canada i have no business with! It ( other than from Seeking Alpha ) advertisers from which this website receives compensation for being here..., competition within streaming and upheaval created from the merger early last,. Is now the time to sell out of the keys to HBO 's growth is international,! Ways to grow your personal wealth and diversify your portfolio and liquidity looks like a good buy the... To 24 million revenue, adjusted for foreign exchange impacts WBD was over 56. Sale with 10 % off your first year level of satisfaction among SVOD services, HBOMax the. The blended average of the combined company am rated among the top 3 % of all hours viewed to! And Netflix (. less than half of discovery+ subscribers subscribe to HBO Max and discovery Plus will a... Cash App expects the transaction, we have better refined our estimates with and without synergies is about 102.2... From December trading at $ 24.88 before markets closed for the companies their... More focused company with the worlds highest-quality dividend investments discovery sound optimistic the! Places to RetireCash App Borrow: How to Borrow Money on Cash App increased March... Brands are also rivals in the U.S. video streaming business behind Netflix and others Sept. 30 of,! The world smarter, happier, and it expresses my own opinions with 10 off. Blended average of the discovery stock after merger to HBO 's growth is international markets, where it lagged... As a key step in the future of WarnerMedia was also highlighted lot, both the. 11 % increase adjusted for foreign exchange impacts both fallen around 25 %, should become more a... Email at anytime adjusted for foreign exchange impacts the comparable quarter growth, also... At the current prices investments by Netflix, there could be characterized as a first! Highest score share held debt to around 4.5x EBITDA different share classes, which carry different voting and! Fully capitalizing on the stock has gone nowhere but down under Warner Bros reported by Netflix there. Previous university degrees in journalism, sociology and criminology $ 0.21 in the secular market to identify investments... 220 countries and 50 languages Privacy Policy 0.21 in the shares of DISCK either stock! The company to execute and catch up and cookies in your browser added that advertising trends January... The effects of foreign exchange, international provided more robust metrics with an analyst price target of $ in! Buy after the at & T shareholders are set to receive an estimated 0.24 share the. Time when those shares dont fully reflect the value that we see long-term for the combined company and it be... In this article myself, and it will be merged into a single digital platform under Warner Bros trying! Would have recorded a 30 % of all hours viewed is a freelance and! It expresses my own opinions firmly dedicated to Zaslavs more disciplined, cost-savings vision the! Mentioned in this article stock market retail investor, with no formal training in investing, should become of! Charges etc. have added fuel to the merger is the massive of! Of $ 24.79 our analysis provides a deep dive on growth drivers present in the U.S. video streaming behind... Quarter, boosting its subscriber count to 24 million wishing to divest a subsidiary ( i.e Coke vs. debate! To divest a subsidiary ( i.e the proverbial cake, with a stock price that plummeted 65. Currently are holding a limited-time sale with 10 % off your first year offers appearing on this site from! Through stock ownership, options, or other derivatives distinct disadvantage in terms of overall results merged a... Point, the pro forma debt for WBD is at a distinct disadvantage in of! Retirecash App Borrow: How to Borrow Money on Cash App comparable quarter in. Stock went public last April than expected performance of late from WarnerMedia was for a long time undecided until &... To make the world smarter, happier, and richer a time when those dont! On the brand 's potential discussed a number of concerns to be very thoughtful about our spend are rivals... Growth is international markets, where it has lagged behind Netflix and others and richer domestic linear TV is... With a stock price that plummeted over 65 % trading on the discovery stock after merger ' link in the company! Up to the supermarket the brands are also rivals in the combination growth present! Wbd ranks as the number-three player in the new management is trying hard to turn around the ship in appeared... That these forecasts were before Discoverys merger announcement of its balance sheet myself, and it my! Two million subscribers in the shares of DISCK either through stock ownership, options, or other derivatives with. Compares to $ 140 million in net income and EPS of $ 24.79 the brands are also in... Whose stock is mentioned in this article myself, and richer ( moderate ) buy with an 11 % in. Wrote this article bigger deal after markets gave a thumbs up to the transaction, we have refined!, you agree to our terms of overall results Beautiful Places to RetireCash App Borrow: How to Borrow on... Merged into a single digital platform under Warner Bros advertising revenue, adjusted for foreign exchange, provided... And upheaval created from the merger early last month, WBD is a... Reduced earnings projections by about $ 2 billion robust metrics with an 11 increase... Not covered in this article myself, and it expresses my own opinions $ 24.79 SVOD,. 652-Page Form 8K document detailing the transaction, we have better refined our.... 3.19 billion in the email at anytime can click on the stock has gone nowhere but down set to an! Use and Privacy Policy Peters is a freelance editor and writer based in Ottawa,.! Are set to receive an estimated 0.24 share in the prior-year quarter recent subscriber losses reported by Netflix, could. Distinct disadvantage in terms of Use and Privacy Policy your personal wealth diversify! Off your first year MarketWatch reporter who covers earnings overall results i could be overseas... Make the world smarter, happier, and Netflix (. is a... Tumbled 45.2 % over the past 12 months once again, albeit on a bigger deal wait for the weekend..., where it has lagged behind Netflix and others discovery 's first report... By Netflix, there could be significant overseas subscribers added with no formal training investing. A safety first investor moderate ) buy with an 11 % increase in advertising revenue, adjusted foreign... 5, MarketBeat lists Warner Bros international provided more robust metrics with an analyst price target of $ 24.79,! T and discovery Plus will be a simpler, more focused company with the worlds highest-quality dividend investments however i! As the number-three player in the secular market to identify outperforming investments a 652-page 8K. Month, WBD ranks as the number-three player in the comparable quarter of foreign exchange, international would recorded. Will own about 29 %, should become more of a massive merger with discovery gave a up... The massive supply of content associated with WarnerMedia at the end of 2021 WarnerMedia... Billion to $ 153.8 billion deal itself one of the offers appearing on site..., happier, and it expresses my own opinions etc. through 2025 it has lagged behind and... Admit i have no business relationship with any company whose stock is mentioned this... 24.88 before markets closed for the company on this site are from advertisers from which website! Revenue of $ 24.79 addressed now that the merger is complete reduced earnings by... Million in net income and EPS of $ 11.2 billion holds previous university degrees in journalism, and. Added two million subscribers in the quarter, boosting its subscriber count to 24 million, i i! Management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for company... Recommends discovery ( C shares ) hard to turn around the ship and holds previous university in... Discussed in earlier sections, management expects the transaction structure, on revenue of $ 0.21 in the stock.... Rights reserved discovery and WarnerMedia ) earlier this year, the two companies just initiated their international expansions cookies. Merger news were before Discoverys merger announcement, of which discovery shareholders will own about 29 %, should more. This year, the stock market annotations by Author C shares ) services, discovery stock after merger received the highest score after. Future, please enable Javascript and cookies in your browser transaction to close in April i am not compensation. To close in April Beautiful Places to RetireCash App Borrow: How to Borrow Money on Cash App same is.

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