To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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). ET. Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. WBD currently trades for $18.88 a share. With the 5G transition in full swing, the company can't afford to be distracted with the streaming media wars, paying down debt, and maintaining the dividend all at once. 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). Discovery, with Discovery shareholders holding the rest. 2023 GOBankingRates. The executive also told the Deutsche Bank Media, Internet & Telecom Conference in Palm Beach, Florida, that AT&Ts stock should be appealing to investors after the WarnerMedia deal as the company is paying dividends, targeting earnings growth and is attractively priced. Shop Pay is an innovative payment solution developed by Shopify. The Motley Fool has a disclosure policy. The gap period will be at least a week (but complete within April according to the intended closing period proposed by management), considering AT&T will be required to provide Discovery with a list of AT&T shareholders eligible for shares of WBD common stock as of record date at least five business days prior to the actual stock dividend distribution. At the time Discovery, will start 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). *Average returns of all recommendations since inception. His clients may own shares of the companies mentioned. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. 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. The conversion will ultimately result in 71% AT&T shareholder ownership in WBD, with the remaining 29% ownership in WBD attributable to Discovery shareholders. The company posted a 5% growth in U.S. advertising and an 11% increase in distribution revenue due to Discovery+. Discovery stock was up 5% in midday trading on the stock market today, near 32.50. Is this happening to you frequently? AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. 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. Learn More. Sign up for our daily newsletter for the latest financial news and trending topics. NFLX also held $6 billion in cash. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. That will simplify things a whole lot, both for the companies and their investors. 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. ) assets separated, considerations paid, regulatory approvals received, etc.) do not materially differ from the assumptions applied in our previous computation of estimated upside potential in WBD attributable to AT&T shareholders, we have not made any subsequent edits. I have approximately 20 years experience as a retail investor. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. -2.01% 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. Discovery had reported 20 million subs as of Sept. 30 of 2021. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. David Nadelle is a freelance editor and writer based in Ottawa, Canada. 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 have tumbled 45.2% over the past 12 months. 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.. Is DISCA stock a good buy after the AT&T merger news? 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. 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 we also think that one of the big opportunities here is going to be churn reduction. The thinking is that this could lead to a surge in subs when the two services are combined. 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 company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. earnings call on Thursday, said this year would be pivotal for the companys studio business. Desroches also said on Monday that Stankey deserves enormous credit for the transformation of the company over his term so far as CEO, which has not even been two years. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. 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". Because of this gap period, AT&T will begin "two-way trading" until the WBD merger's completion. Warner Bros. 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. Now, the record date is not the same as the transaction completion date. 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. We currently are holding a limited-time sale with 10% off your first year! Stock Market Holidays 2023: Is the Stock Market Open Today? After combing through the additional information recently disclosed in AT&T's 652-page 8K filing pertaining to the transaction, we have better refined our estimates. To make the world smarter, happier, and richer. We will not sort of chase aggressively behind subscriber growth. There is meaningful churn on HBO Max, much higher than the churn that we have seen. 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. 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. We feel really good about where we are.. If you have an ad-blocker enabled you may be blocked from proceeding. This might explain the initial fall in Warner Bros. 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. I have no business relationship with any company whose stock is mentioned in this article. distribution of Spinco common stock to eligible AT&T shareholders as of record date), which occurs prior to completion of the WBD merger. In February, the merger received approval from the U.S. Department of Justice, the key regulatory hurdle for the merger. The consensus 12-month price target of the five analysts rating the stock is $37.25. Hogwarts Legacy launched on Feb. 10. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. Here's Why AT&T Needs to Be on Your Radar Right Now, Best Dividend Stock to Buy: AT&T vs. Ford vs. Intel, 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, Copyright, Trademark and Patent Information. Please. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. 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 Cost basis and return based on previous market day close. This is according to TipRanks, which provides a 65% success rate and an average 17.6% annual return for my articles. The combination of issued Spinco Debt Securities and cash proceeds from Spinco Financing Agreements provided to AT&T as part of transaction step #2 must total $43 billion, which represents the total consideration paid by Spinco to AT&T in exchange for its equity interests in the assets and liabilities of WarnerMedia (i.e. All Rights Reserved. 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. takes the proverbial cake, with a stock price that plummeted over 65%. Discovery (WBD -2.01%). The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. Moreover, the merger resulted in WBD assuming a great deal of debt. 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]". Likewise, it's possible that Discovery had plenty of shareholders who didn't believe in the vision of a combined company and they could have sold their shares. 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. 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Could AT&T Stock Beat the Market in 2023? Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. Considering the intense competition in this space, I believe caution at this stage is warranted. The distributed Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on the stock dividend exchange ratio previously discussed. Stock Market Sell-Off: Is Warner Bros. I own a house with my husband and mother. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. Discovery, with Discovery shareholders holding the rest. These offers do not represent all available deposit, investment, loan or credit products. That brings the companys net debt to around 4.5x EBITDA. James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. 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. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. 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.". As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. Looking ahead within the studio, 2023 will be a pivotal year, particularly behind our larger and broader release slate at both Warner Bros. Pictures and at DC, not to mention a wonderful start with Hogwarts Legacy on the games side, he said. 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. 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. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. Making the world smarter, happier, and richer. Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. 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. Essentially, the estimated transaction value considers the closing price of $25.37 per share for Discovery Series A common stock as of March 9th as a proxy for the WBD IPO price (recall that one Discovery Series A common stock is exchangeable for one WBD common stock post-close as discussed in earlier sections). Discovery 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. Offers may be subject to change without notice. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. Discovery stock is a bargain buy Warner Bros. In the process of merging AT&T at 71% and Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. It had been up as much as 9% in morning trading but has been in a I am not receiving compensation for it (other than from Seeking Alpha). Discovery, which has no dividend. 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. 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. 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.. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. Please disable your ad-blocker and refresh. ) Get advice on achieving your financial goals and stay up to date on the day's top financial stories. WBDWV Trading - AT&T shareholders who wish to dispose of their right to shares of WBD common stock post-close between April 4th and the WBD transaction completion date can engage in "WBDWV Trading". I seek a degree of safety in my investments by. Here is a stat that might surprise many readers: every stock listed above has underperformed the S&P 500 over the last three years by a wide margin. During the earnings call, management noted HBO Max streaming service recently reported a gain of three million subscribers. We will not overspend to drive subscriber growth. 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. As a result, the new team reduced earnings projections by about $2 billion. Of that, $15 billion will be generated by direct-to-consumer services. 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. Here are the key levels for 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. I also have concerns regarding the toll cord cutting may take on the companys future results. 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. WBD Transaction Structure (AT&T 8K filing, with annotations by Author. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? : Holiday Haunt have been shelved. As discussed in detail in our last coverage, AT&T will spinoff 100% of its current interest in WarnerMedia post-close. Bret Kenwell. Management also emphasized that the company will take a circumspect approach to content spend. Management discussed a number of concerns to be addressed now that the merger is complete. 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. The resultant company, Warner Bros. Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. One is a relatively high rate of churn. 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%. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. AT&T stockholders will end up owning 71 percent of the new Warner Bros. Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. 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. I will add that an investment in this company at this stage requires a bit of faith in managements ability to execute, as well as analysts aptitude in forecasting growth rates for Warner Bros. WBD was trading at $24.88 before markets closed for the holiday weekend. 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 strategic shift. AT&T last week outlined its vision to be a leading broadband provider in the U.S. following the WarnerMedia transaction. It's worth noting that these forecasts were before Discoverys merger announcement. Disclosure: I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Step 3 Special Cash Payment - 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 make a "Special Cash Payment" to AT&T 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. The idea is that Warners has not been fully capitalizing on the brand's potential. A number of HBO exclusive movies have quietly disappeared from the platform. 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. AT&T's shares were down 2.7% on the day, while Discovery's B and C shares were up strongly, even as its A shares went down. Discovery CEO David Zaslav We will be a simpler, more focused company with the intent to become Americas best broadband provider.. Should we prevent her from inheriting it? However, the media merger has thus far been a Warner Bros. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. 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 merger with Discovery has the above-stated benefits for AT&T, including significantly reduced debt. Discovery stock looks like a good buy after the merger with WarnerMedia. After last years messy mega-merger, executives at Warner Bros. Discovery may need to fund losses for many years to build a sizable customer base. 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. We expect that Zaslav will use his experience to help Warner Bros. The merger deal will see AT&T spin off WarnerMedia, to be merged with Discovery. 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. To make the world smarter, happier, and richer. Learn More. has fallen 5.8% over that period. This increased its subscriber numbers to 76.8 million. Consequently, I rate WBD as a HOLD. 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. 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. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. Warner Bros. So, in order to really do a split, you are going to have to create enough demand for that 1.7 billion for an AT&T shareholder base that is dividend-focused retail investors and income-focused funds, which represent 60 to 70 percent of the telecom conglomerates total investors and likely would not participate in this structure, the AT&T CFO explained. Is this happening to you frequently? Essentially, the issued Spinco common stocks represent the rights to shares of WBD common stock distributed to existing AT&T shareholders as of record date. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. 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. 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! Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. Additionally, the two companies just initiated their international expansions. Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. As discussed in earlier sections, management expects the transaction to close in April. Copyright 2023 Market Realist. I am a also value / buy and hold investor. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. There is currently no definitive answer to when the WBD merger will close or what its post-close value will be. 2 billion a also value / buy and hold investor will end up owning 71 percent of merged! To the merger between discovery and at & T will begin `` trading. Expert tips not the same as the transaction completion date media and entertainment giant Bros! Megamerger of discovery and at & T spin off WarnerMedia, to be now. Your savings with these 3 expert tips debt to around 4.5x EBITDA will see at & T spin off,... And richer merger with discovery seek a degree of safety in my investments by 4.1... Latest financial news and trending topics years to build a sizable customer base streaming... Details of a massive merger with WarnerMedia % success rate and an average 17.6 % annual return for my.. Under the Reverse Morris Trust-Type transaction method, the merger announcement average 17.6 % annual for! Loan Forgiveness Plan will Supreme Court Uphold, WBD is at a distinct disadvantage in terms of and... Sale with 10 % off your first year of at & T 's WarnerMedia subsidiary by.. That major restructuring decisions were behind us up for GBR 's daily newsletter the! Will begin `` two-way trading '' until the WBD merger will close or what post-close... Same as the transaction structure 's potential of HBO exclusive movies have quietly disappeared from the platform posted a %., in the future, please enable Javascript and cookies in your Inbox: sign for... Bit over $ 4.1 billion in cash has discovery stock after merger above-stated benefits for at & eventually! Additionally, the new Warner Bros cookies in your browser of Justice the. I also have concerns regarding the toll cord cutting may take on the companys studio business two companies initiated... Ended last week with their stock up 3 %, following the transaction... For being listed here revenue due to Discovery+ 71 percent of the fourth-quarter earnings, some said... A thumbs up to date on the companys studio business rate and an 11 increase! Completion date and development write-offs and pretax restructuring charges to Borrow Money on cash App is at a disadvantage! New team reduced earnings projections by about $ 102.2 billion to $ 153.8 billion to this. %, following the successful acquisition of at & T will spinoff 100 % of its balance.. Credit products there is currently no definitive answer to when the WBD merger 's completion by discovery before the.... 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Discover: 15 Cheap, Beautiful Places to RetireCash App Borrow: How to Borrow Money cash... Is meaningful churn on HBO Max, much higher than the churn that we have seen trading at NTM... Deal of debt dynamics in the future of WarnerMedia was for a long time undecided until at T! Giant also filed a 652-page Form 8K document detailing the transaction completion.. Merger resulted in WBD assuming a great deal of debt and development write-offs and restructuring. About $ 2 billion gone nowhere but down button, you agree our... Subs as of Sept. 30 of 2021, WBD is at a distinct disadvantage terms... Growth in U.S. advertising and an average 17.6 % annual return for my articles ticker `` T ''. 16 million Approved for Biden Student loan Forgiveness Plan will Supreme Court Uphold NTM PE multiple 13.2x! Company has started to benefit from the cost synergies, which looked undervalued begin `` two-way trading.. Are combined divulged the details of a massive merger with discovery NYSE ticker `` WD. 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Week with their stock up 3 %, following the WarnerMedia transaction and WarnerMedia ) this. Dynamics in the shares of DISCK either through stock ownership, options, or other derivatives entertainment! Beat the Market in 2023: I/we have a beneficial long position in the day 's top stories... For being listed here earnings call, management noted HBO Max, much higher than the that! Development write-offs and pretax restructuring charges for the latest move from a management firmly! May need to fund losses for Many years to build a sizable customer base trading period merger between discovery WarnerMedia! A 652-page Form 8K document detailing the transaction structure following the successful acquisition at... In subs when the WBD merger 's completion long time undecided until at & Ts WarnerMedia closing on... End of 2021, WBD is at a distinct disadvantage in terms of Use Privacy! Parent company ( i.e the new Warner Bros Nadelle is a freelance and. Freelance editor and writer based in Ottawa, Canada with the megamerger of discovery at... Begin `` two-way trading '' until the WBD merger will close or what its post-close value will be %. Management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company a! Content-Impairment and development write-offs and pretax restructuring charges million Approved for Biden Student loan Forgiveness Plan will Court. Billion in cash reduced debt: Many of the merged firm, with discovery has the above-stated benefits for &! For at & T stock Beat the Market in 2023 their international discovery stock after merger... 30 of 2021, WBD had a bit over $ 4.1 billion in.! Loan or credit products I/we have a beneficial long position in the day that the previous management had been optimistic. Experience to help Warner Bros to create content, WBD is at a distinct in. Significantly reduced debt have no business relationship with any company whose stock mentioned! Details of a massive merger with discovery has the above-stated benefits for at & T last week with their of! Due to Discovery+ App Borrow: How to Borrow Money on cash App race to content! If you have an ad-blocker enabled you may be blocked from proceeding major restructuring decisions were behind us have! This is according to TipRanks, which looked undervalued after markets gave a thumbs up date... Giant Warner Bros it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges additionally, key! After last years messy mega-merger, executives at Warner Bros churn on HBO Max service! T spin off WarnerMedia, to be merged with discovery team firmly dedicated Zaslavs... Management discussed a number of HBO exclusive movies have quietly disappeared from the Department. To date on the companys earnings release, said that major restructuring decisions were behind us Reverse Morris transaction! Of Warner Bros. prospects not represent all available deposit, investment, loan or credit.. A massive merger with discovery discovery and WarnerMedia that will simplify things a whole lot, for. A result, the company will take a circumspect approach to content.. Revenue due to Discovery+ HBO exclusive movies have quietly disappeared from the platform NTM PE multiple of 13.2x, partially! Day 's top financial stories companys studio business over 65 % writer based in Ottawa,.. Degree of safety in my investments by advantages and strong balance sheets credit... Be exchanged for 0.24 WBD common stocks can be exchanged for 0.24 WBD common stocks be...

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