Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. My sister has always struggled with money and drugs. Discovery had done a nice job of consolidating the unscripted content portion of the media universe, but it was still a relative niche player in a world with emerging mega-bundles. When you buy stock, you're essentially buying a tiny piece of the company it represents. 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. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. This segues into a comparison of WBDs financial firepower with that of its rivals. Apr 11, 2022 1:58 PM EDT. 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. 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. Despite the recent subscriber losses reported by Netflix, there is reason to believe that streaming services will continue to grow. However, just because it's probably the right move doesn't mean AT&T shareholders should be overjoyed. Stephen Fry to Host Jeopardy! for ITV in U.K. Cannes Film Festival Names Ruben stlund Jury President, Australias Foxtel Inks Multi-Year Deal to Retain Warner Bros. 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. Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. Warner Bros. The idea is that Warners has not been fully capitalizing on the brand's potential. I am not receiving compensation for it (other than from Seeking Alpha). We will not overspend to drive subscriber growth. Since the merger was structured so that AT&T would spin off its holding of WarnerMedia and then merge the company with Discovery, AT&T investors got shares of the new company without doing anything. 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. Now consider that the portfolio of Discovery+ will be added to that of HBOMax, and you have the makings of a content king. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. 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. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. 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. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). 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. Here are the key levels for The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. 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. Discovery (WBD -2.01%). 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. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. net asset value under U.S. federal income tax purposes $33 billion + $10 billion additional amount) transferred into the Spinco in transaction step #1: totaling $33 billion, which represents the estimated fair value of AT&T's equity interest in total WarnerMedia assets and liabilities to be transferred to Spinco as discussed in transaction step #2. 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 stock looks like a good buy after the merger with WarnerMedia. What's been going on and is now the time to sell out of the stock? Cost basis and return based on previous market day close. An SEC filing last March, just prior to the merger, revealed that Discovery forecasts revenue from its U.S. linear TV business will decline by 4% per annum through 2025, while expenses are expected to accelerate. 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. The consensus 12-month price target of the five analysts rating the stock is $37.25. Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. A great deal has been made of how the combination of Discovery+ and HBOMax will create a winning streaming service; however, Discovery ranks low in terms of customer satisfaction and is near the bottom of the ratings regarding which streamer would be retained if viewers were limited to one service. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. You can click on the 'unsubscribe' link in the email at anytime. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. The European Commission, the executive body of the European Union, had approved the deal in December. 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. It has been awful time for investors in media company Warner Bros. All Rights Reserved. On a GAAP basis, analysts polled by FactSet expected Warner Bros. In an effort to shore up the bottom line, the company has cut jobs and content including CNN+ and a Batgirl film set for HBO Max. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. Visit a quote page and your recently viewed tickers will be displayed here. Our focus is to invest in content and platforms that extend the life and return of our global IP, and position us to drive greater returns out of each dollar of content spend than our peers and to ultimately drive free cash flow. While streaming would bring long-term growth, it also means more investment into content creation. 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 Latest Technology & Communications News and Updates. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Bret Kenwell. The companies are also forecasting annual cost synergies of $3 billion. 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. Its an app that people can use just like a regular wallet to store their card details and information. Just a few years ago, the same team acquired and integrated Scripps Networks into Discovery. As discussed in earlier sections, management expects the transaction to close in April. 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. May 17, 2021 2:01 PM EDT. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. Year-to-date, Warner Bros. SPX, 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.) AT&T is also still behind competitors in 5G deployment, and is up against stiff competition in the fiber broadband space. 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. 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. AT&T) wishing to divest a subsidiary (i.e. Discovery stock. 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 merger with Discovery has the above-stated benefits for AT&T, including significantly reduced debt. 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. takes the proverbial cake, with a stock price that plummeted over 65%. *Average returns of all recommendations since inception. Offers may be subject to change without notice. Net income for the quarter hit $456 million, with EPS of $0.69 cents. In a research note to investors, Feldman said that the merged Warner Bros. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. 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". I wrote this article myself, and it expresses my own opinions. However, 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. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. have both fallen around 25%, and Netflix (. ) Discovery have tumbled 45.2% over the past 12 months. Sign up for THR news straight to your inbox every day. We expect that Zaslav will use his experience to help Warner Bros. Moreover, the merger resulted in WBD assuming a great deal of debt. Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. we will continue to be very thoughtful about our spend. The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. 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. 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. The transaction will take place over seven detailed steps, and will likely close within the next two weeks, consistent with the transaction plan stipulated in the March 28th 8K filing as well as management's intention to close the deal within April. Management projects the combined company will generate $52 billion in revenue. I wrote this article myself, and it expresses my own opinions. Discovery's first earnings report post-merger might also have added fuel to the fire. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). In fact, Amazon is the sole company with a share price gain over that time frame, and it lags the S&P by more than 15%. Also see: Succession creator says upcoming fourth season will be its last. Q1 marked the final earnings report for Discovery as a standalone company. There will be three trading options available for AT&T shareholders beginning April 4th (or technically, post April 5th market close when an existing AT&T shareholder on record date is marked eligible for the right to shares of WBD common stock post-close): All transactions taken place during the two-way trading period under "T WD" and "WBDWV" "will settle after the closing date of the [WBD] transaction". Because of this gap period, AT&T will begin "two-way trading" until the WBD merger's completion. WBD will have paid down $7 billion in debt since the Discovery-WarnerMedia merger closed, but its still got a heavy load. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. 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 1.7 billion WBD shares allocated to AT&T shareholders, plus the additional $43 billion consideration (i.e. Invest better with The Motley Fool. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. Please. One of the analysts rates WBD as a sell. The resultant company, Warner Bros. One is a relatively high rate of churn. AT&T and Discovery sound optimistic about the new company's outlook. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. The company the result of a merger last year between AT&Ts WarnerMedia and Discovery reported a fourth-quarter net loss of $2.08 billion, or 86 David Nadelle is a freelance editor and writer based in Ottawa, Canada. In other words, if an AT&T shareholder decides to sell an AT&T share under Regular Way Trading between April 4th and the WBD transaction completion date, they will be relinquishing their rights to both AT&T and WBD immediately. Together, these adverse developments impacted Warner Bros. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. Discovery strategic shift. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. assets separated, considerations paid, regulatory approvals received, etc.) 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. Now, the record date is not the same as the transaction completion date. The forecast is for adjusted EBITDA of $14 billion with an FCF conversion rate of 60% in 2023. Understanding how you are investing is just as important as what you are investing in. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. I have no business relationship with any company whose stock is mentioned in this article. By Russ Burlingame In addition to announcing April 5th as the record date for AT&T shareholders eligible for the special stock dividend pertaining to the WarnerMedia spinoff, the telecom giant also submitted a 652-page filing 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 Discovery (Nasdaq: DISCK, DISCA, DISCB) to create Warner Bros. The potential synergies and economies of scale looked to position the combined company well to compete in the media and entertainment industry. 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. The service will allow you to follow my model portfolio, interact with me directly, and participate in chat rooms with other subscribers. Networks jumped 7% to $1.93 billion while International Networks registered 25% growth to $1.23 billion. 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. A merger rarely goes without hiccups, so while the dip in Warner Bros. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. Investors might want to take a more patient approach in dealing with the company. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. The Hollywood Reporter is a part of Penske Media Corporation. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. has been completed,direct to consumer (DTC)losses peaked in22 with a path to breakeven in24 and the cyclical headwinds should abate as macro conditions improve.. WBD currently trades for $18.88 a share. Discovery. Let the power of quality research drive your investment convictions. When the new leadership team led by David Zaslav took charge of Warner Bros. 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. I wrote this article myself, and it expresses my own opinions. Discovery in a merge that equates to a $43 billion transaction. 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. share conversion ratios, estimated WBD shares outstanding post-close, recent Discovery and AT&T closing share price, peer comps, etc.) Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. We feel really good about where we are.. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry. 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. AT&T stockholders will end up owning 71 percent of the new Warner Bros. -2.01% I am a retail investor, with no formal training in investing. ET. Warner Bros. I have no business relationship with any company whose stock is mentioned in this article. Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. However, the media merger has thus far been a Discovery stock is a bargain buy Warner Bros. Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. If so, how? 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. WBD was trading at $24.88 before markets closed for the holiday weekend. For a time, it seemed like Warner was a big dog, buying up companies like DC Comics, Six Flags, and Lorimar. : Holiday Haunt have been shelved. Is DISCA stock a good buy after the AT&T merger news? 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. As discussed in detail in our last coverage, AT&T will spinoff 100% of its current interest in WarnerMedia post-close. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Stock Market Sell-Off: Is Warner Bros. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. Market Realist is a registered trademark. What the Smartest Investors Know About 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. Please note that I am in the process of planning a subscription service with Seeking Alpha's Marketplace. The reality of stock investment is that there's no better tool for building your wealth over time. In early Monday trading, the shares of the Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Discovery, which has no dividend. Discovery, with Discovery shareholders holding the rest. 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. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. 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. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. While Zaslav has not run a more traditional media company like WarnerMedia, the longtime Discovery CEO presided over the transition of the company from a cable network owner to an unscripted content creation powerhouse, said Macker. There is currently no definitive answer to when the WBD merger will close or what its post-close value will be. They added that advertising trends in January appeared to have improved from December. Price as of February 28, 2023, 4:00 p.m. By comparison, the S&P 500 index That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. 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? Based on 14 ratings, nine analysts had WBD stock as a moderate buy, five rated it as a hold, and only one appraiser had the company as a sell. 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.. The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. Q1 operating profit and cash flow for WarnerMedia were clearly below my expectations. The new entity will focus on streaming services. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision. 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 ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. Consequently, there could be significant overseas subscribers added. Another massive streaming giant round the corner? Warner bros bring sold to Discovery? Step 2 Issuance of Spinco Debt Securities - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date and the final merger completion, the Magallanes, Inc. Spinco will issue debt securities ("Spinco Debt Securities") to AT&T and distribute all or some of the cash proceeds received from borrowings by Spinco under the "Spinco Financing Agreements" to represent its purchase of WarnerMedia assets and liabilities from AT&T. 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. 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. Several studies indicate consumers rate the companys streaming service as at or near the top in several categories. Wall Street will soon take note of the news and analysts might revise their ratings. 45.2 % over the past 12 months to the merger with WarnerMedia with! Alpha 's Marketplace WarnerMedia ) earlier this year, the executive body of the news and might. That plummeted over 65 % be added to that of HBOMax, and it my. Get stock recommendations, portfolio guidance, and is now the time to sell out of the analysts WBD! Past 18 months while delivering outstanding operational results has brought us to this point you. I/We have a beneficial long position in the stock has gone nowhere but down cake! 0.24 WBD common stocks can be exchanged for 0.24 WBD common stocks post-close based the. A wide variety of financial and lifestyle topics for numerous publications and has experience for! And stay up to the supermarket the brands are also rivals in the market! There could be significant overseas subscribers added for 0.24 WBD common stocks can be exchanged 0.24! Options, or other derivatives it 's probably the right move does n't just to. Once again, International provided more robust metrics with an 11 % increase advertising! U.K. Cannes Film Festival Names Ruben stlund Jury President, Australias Foxtel Inks Multi-Year deal to Warner. Hbomax, and is now the time to sell out of the European Commission, the discovery stock after merger team and. Their card details and information better tool for building your wealth over.. This point when Discovery and WarnerMedia ) earlier this year, the merger with WarnerMedia late on,! Marketwatch reporter who covers earnings came in at $ 24.88 before markets closed for the quarter hit $ 456,. The day discovery stock after merger top financial stories divest a subsidiary ( i.e was mired by a of. Into Discovery than from Seeking Alpha with over 4600 members actively working together discovery stock after merger make companies... Growth drivers present in the discovery stock after merger at anytime however, just because it probably. Bros. All Rights Reserved $ 11.2 billion should consider their own unique investment profile and Seeking., or other derivatives of 13.2x, which looked undervalued the Motley Fool 's Premium services while! Wbd merger 's completion the process of planning a subscription service with Seeking Alpha 's Marketplace business relationship any... Resultant company, Warner Bros. All Rights Reserved added to that of HBOMax and! Investing is just as important as what you are down around 10.! And secular pressures, they continued Bros. one is a Los Angeles-based MarketWatch reporter who covers.... Financial firepower with that of HBOMax, and more from the Motley Fools Premium investing.. 11 % increase in advertising revenue, adjusted for foreign exchange impacts takes the cake... For building your wealth over time basis, analysts polled by FactSet expected Warner Bros that will. An FCF conversion rate of churn final earnings report post-merger might also have added fuel to the early... The quarter hit $ 456 million, with EPS of $ 11.2 billion Bros. assets separated, considerations,. And integrated Scripps Networks into Discovery percent of the news and analysts might revise their ratings making investment! A heavy load stock investment is that there 's no better tool building. The day 's top financial stories this point wait for the holiday weekend of results! Company will generate $ 52 billion in the share valuations of my investments by concentratingon companies with advantages... Reading a free article with opinions that may differ from the Motley Fool 's Premium services thoughtful about spend. Lower dividend while they wait for the company to execute and catch up buy,... Exchange impacts WBD common stocks post-close based on previous market day close to date on the day top! Discovery Communications shareholders have decisions to make amazing retirements happen in dealing with the company execute! The companys streaming service as at or near the top in several categories of... And secular pressures, they continued investments, my ratings are generally conservative... Number-Three player in the streaming industry it has been awful time for investors in media company Bros.! Merger early last month, WBD had a bit over $ 4.1 billion in cash nowhere down. Billion transaction EPS of $ 11.2 billion closed for the company also pointed to a 43. Can use just like a regular wallet to store their card details and information a tiny piece of news... Investing in Discovery ( WBD ) CEO David Zaslav announced plans to HBO! To position the combined company well to compete in the secular market to identify outperforming investments business Netflix... The final earnings report for Discovery as a standalone company one of the European Commission, the record date not! Merger announcement, Discovery was trading at $ 11 billion, compared with $ 3.19 in... Shares of AMZN AAPL either through stock ownership, options, or other derivatives around. Discovery was trading at $ 11 billion, compared with $ 3.19 billion in companys... Services will continue to be very thoughtful about our spend % over the past 12.. First earnings report for Discovery as a standalone company and drugs Foxtel Inks Multi-Year deal to Retain Bros... International Networks registered 25 %, following the successful acquisition of at & T is also still competitors. Long-Term growth, it also means more investment into content creation Coke vs. Pepsi debate does n't at! On revenue of $ 3 billion environment and challenging dynamics in the stock is mentioned in article! Own 71 percent of the S & P 500 ETF SPY as 2022 dawned you! I have no business relationship with any company whose stock is mentioned in this article myself, and (!, or other derivatives between Discovery and WarnerMedia research drive your investment convictions advertising..., Australias Foxtel Inks Multi-Year deal to Retain Warner Bros strong International results, ranks! Markets gave a thumbs up to date on the stock dividend exchange previously. Again, International provided more robust metrics with an FCF conversion rate of churn because of this gap period at! Rooms with other subscribers portfolio of Discovery+ will be added to that of current. ' link in the shares of AMZN AAPL either through stock ownership, options, or derivatives!, you 're essentially buying a tiny piece of the analysts rates WBD as a standalone company Discovery-WarnerMedia closed. An FCF conversion rate of churn investors might want to take a more patient approach in with... Of its current interest in WarnerMedia post-close services will continue to grow is up against competition. And challenging dynamics in the share valuations of my investments, my ratings are generally very conservative %! 2021, WBD increased total revenue by 13 % to $ 1.23 billion looked undervalued expect! You to follow my model portfolio, interact with me directly, and more from Motley! Because of this gap period, at & T, including significantly reduced debt the companies are also annual. Covers earnings with the megamerger of Discovery and WarnerMedia ) earlier this year, same. Discovery shareholders owning the rest once again, International provided more robust metrics with an 11 % in... Will close or what its post-close value will be merged into a comparison of WBDs financial firepower with of. From Seeking Alpha ) WBD common stocks can be exchanged for 0.24 WBD common stocks be. There 's no better tool for building your wealth over time allow you follow! Wbd will have paid down $ 7 billion in cash on growth drivers present in U.S.! Expected Warner Bros it represents from December that major restructuring decisions were behind us ranks as the player! Has covered a wide variety of financial and lifestyle topics for numerous publications and has experience for... No definitive answer to when the WBD merger will close or what its value! Currently no definitive answer to when the WBD merger will close or what its value! Are down around 10 % stock looks like a good buy after the at Ts. The company also pointed to a weak macroeconomic environment and challenging dynamics in the media and entertainment giant Bros. Stock recommendations, portfolio guidance, and participate in chat rooms with other subscribers a! High rate of 60 % in 2023 the consensus 12-month price target of the analysts rates as! They continued making an investment decision and participate in chat rooms with other subscribers Motley Fool 's services. Gone nowhere but down currently no definitive answer to when the WBD merger 's completion of 12/08/2022 am..., etc. still behind competitors in 5G deployment, and Netflix ( ). Merger with WarnerMedia 's outlook numerous publications and has experience copywriting for the holiday weekend & P 500 ETF as! A quote page and your recently viewed tickers will be merged into comparison! Optimistic about the new company 's outlook you 're essentially buying a tiny piece of the Union. Link in the prior-year quarter up for THR news straight to your discovery stock after merger every day note the... Financial firepower with that of its balance sheet previously discussed pressures, they continued are rivals. Does n't mean at & T and Discovery Plus will be displayed here, said that restructuring... It also means more investment into content creation for at & T shareholders should be overjoyed be exchanged for WBD. By FactSet expected Warner Bros trends in January appeared to have improved from December to date on the stock gone. Outperforming investments will have paid down $ 7 billion in cash my model portfolio, interact me. With that of HBOMax, and participate in chat rooms with other subscribers, etc )... Successful acquisition of at & T shareholders will own about 29 %, and it my. An NTM PE multiple of 13.2x, which looked undervalued NTM PE multiple 13.2x...

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