This segues into a comparison of WBDs financial firepower with that of its rivals. 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. In a filing in December, Warner Bros. Under WBDWV Trading, AT&T shareholders will be able to sell their right to WBD shares distributed to them as a result of their AT&T share ownership as of the record date through the temporary Nasdaq ticker "WBDWV" beginning April 4th. This array of content serves to attract and retain subscribers. 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. It had been up as much as 9% in morning trading but has been in a 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. In a research note to investors, Feldman said that the merged Warner Bros. Discovery in a merge that equates to a $43 billion transaction. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. SPX, What's been going on and is now the time to sell out of the stock? 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. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. 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. 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". -2.01% Discovery posted fourth-quarter 2022 earnings on Feb. 23, with revenue of $11.01 billion decreasing 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. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. 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). 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. 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. 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. Under the terms of the deal, WarnerMedia retained $43 billion in debt. Considering the latest disclosure of WBD transaction details (e.g. 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. I am not receiving compensation for it (other than from Seeking Alpha). Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Copyright 2023 Market Realist. By Russ Burlingame The merger between HBO Max and Discovery+ is due to roll out in the summer of 2023, per Yahoo Finance, with international launches set to follow in 2024, said CFO Gunnar Wiedenfels at the earnings call. takes the proverbial cake, with a stock price that plummeted over 65%. 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. 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. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. That will simplify things a whole lot, both for the companies and their investors. -0.30% Another massive streaming giant round the corner? Zaslav hasnt been shy in making changes that align with the Warner Bros. AT&T and Discovery sound optimistic about the new company's outlook. 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. 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". We expect that Zaslav will use his experience to help Warner Bros. 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. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. NFLX also held $6 billion in cash. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. The Motley Fool recommends Discovery (C shares). Furthermore, unlike Netflix, management recently reported fairly robust subscription growth for Discovery and Warner Brothers. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. Maximize your income with the worlds highest-quality dividend investments. Investors might want to take a more patient approach in dealing with the company. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. 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. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. The final green light for the megadeal came at a special shareholder meeting held online; shareholders of AT&T, led by CEO John Stankey, do not need to vote on the combination. - April 18, 2022 08:39 am EDT. As a result, the new team reduced earnings projections by about $2 billion. 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. Year-to-date, Warner Bros. 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. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. 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. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Is this happening to you frequently? Many investors got shares of the newly created company without doing anything. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. 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. The forecast is for adjusted EBITDA of $14 billion with an FCF conversion rate of 60% in 2023. My primary focus is on dividend bearing stocks. The company reported nearly $450 million in next generation revenue, a 55% increase over the prior-year quarter. And right or wrong, management has made a decision to invest a lot of the incoming funds into a number of investment initiatives. Learn More. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. 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. Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. When the new leadership team led by David Zaslav took charge of Warner Bros. 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. 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 James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. 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. There is meaningful churn on HBO Max, much higher than the churn that we have seen. The Journal said that rather than fully combine Discovery+ and HBO Max as once planned, Warner will move ahead with a platform that will feature HBO Max content and most Discovery+ content, with Discovery+ remaining available as a standalone option., Benchmark analyst Matthew Harrigan, in a note this month, said that decision was not surprising given the likelihood of losing some price-sensitive customers for whom shows like House of the Dragon or critically acclaimed new hitThe Last of Usdoes not resonate, or at least not enough to pay a likely higher price than the present $15.99/$9.99 (with ads) for HBO Max.. Desroches mentioned that Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. Additionally, the two companies just initiated their international expansions. Step 7 The Merger - Once transaction steps #1-7 are complete, Discovery's Drake Subsidiary, Inc. merger subsidiary will merge into Magallanes, Inc. Spinco, with the Spinco being the surviving "wholly owned subsidiary of WBD". 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. We had previously estimated about 2.4 billion WBD shares outstanding post-close according to AT&T's stock dividend structure of 0.24 WBD shares for each AT&T share. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. In the big deal, expected to close during the second quarter, AT&T will next spin off WarnerMedia and merge it with Discovery, with AT&T shareholders set to receive an estimated 0.24 share in the new company for each AT&T share held. Stock Market Sell-Off: Is Warner Bros. Discovery's Stock, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, Billionaire Investor Bill Ackman Is Raking In $97 Million In Annual Dividend Income From These 2 Stocks, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 3 No-Brainer Stocks to Buy With $50 Right Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. As discussed in earlier sections, management expects the transaction to close in April. Warner Bros. One of the analysts rates WBD as a sell. The reality of stock investment is that there's no better tool for building your wealth over time. 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. These offers do not represent all available deposit, investment, loan or credit products. Discovery ("WBD"). Please. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. At least both companies won't be distracted with an adjacent industry anymore. Discovery as a consensus (moderate) buy with an analyst price target of $24.79. The stock could be a long-term winner based on its the strong growth potential in the streaming industry. Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. DISCA stock looks like a good buy at the current prices. Discovery to report a loss of 35 cents a share, on revenue of $11.2 billion. During the earnings call, management noted HBO Max streaming service recently reported a gain of three million subscribers. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. The forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. Let the power of quality research drive your investment convictions. 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. Author's Note: Thank you for reading my analysis. The Motley Fool owns shares of and recommends Netflix. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Discovery strategic shift. The thinking is that this could lead to a surge in subs when the two services are combined. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. Is this happening to you frequently? 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. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. We could see some more consolidation in the streaming industry as the smaller players combine their resources to take on industry heavyweight Netflix. The companies are also forecasting annual cost synergies of $3 billion. And Discovery's largest shareholder, John Malone, supported the deal wholeheartedly. Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. Warner Bros. Visit a quote page and your recently viewed tickers will be displayed here. Discovery, which has no dividend. I own a house with my husband and mother. However, a significant share of WBDs revenue is derived from the companys cable business, and it is no secret that cable is experiencing a secular decline. That compares to $140 million in net income and EPS of $0.21 in the comparable quarter. AT&T and Discovery on Monday announced that they will merge their media assets in a megadeal that creates a stronger rival to Walt Disney and Netflix amid global The new streaming behemoth will have a huge library of 200,000-plus hours of content, from Warner Bros. Studios, HBO and MBO Max, The Turner channels (TNT, TBS, CNN), as well as Discovery's comprehensive portfolio of unscripted content. All Rights Reserved. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. Please disable your ad-blocker and refresh. ) What the Smartest Investors Know About Warner Bros. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. 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 I am a retail investor, with no formal training in investing. I am not receiving compensation for it (other than from Seeking Alpha). David Nadelle is a freelance editor and writer based in Ottawa, Canada. Discovery+, added two million subscribers in the quarter, boosting its subscriber count to 24 million. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. Discovery's share price when the new company began trading earlier this year. Asked about the risk of future dividend cuts, Desroches said that the dividend is not only safe, but its size gives the company financial flexibility. 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. Without the ability to invest billions in content to compete with the likes of Netflix, legacy cable companies were likely to get left behind, or at least become niche offerings without much growth. The merger deal will see AT&T spin off WarnerMedia, to be merged with Discovery. 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. Discovery has over 15 million paying streaming subscribers globally, while HBO and HBO Max reportedly have 64 million subscribers globally. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. 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. While it was a nice niche player before, I think the growth possibilities for the new company are much bigger than they would have been for Discovery alone. 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. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Discovery, with Discovery shareholders holding the rest. I have no business relationship with any company whose stock is mentioned in this article. 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. Discovery stock is a bargain buy Warner Bros. ET. 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. There is a distinct change in direction away from the quantity-producing growth approach practiced by Netflix to the curated quality model Zaslav envisions for WBD. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. Hogwarts Legacy launched on Feb. 10. Price as of February 28, 2023, 4:00 p.m. 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". 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. The management team has plenty of experience executing mergers. WBD will have paid down $7 billion in debt since the Discovery-WarnerMedia merger closed, but its still got a heavy load. AT&T stockholders will end up owning 71 percent of the new Warner Bros. Note that the WBD merger is a "Reverse Morris Trust-Type Transaction", which occurs on a tax-free basis for existing AT&T and Discovery shareholders. 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. Discovery CEO David Zaslav Several studies indicate consumers rate the companys streaming service as at or near the top in several categories. The streaming space is crowded, and Warner Bros. The European Commission, the executive body of the European Union, had approved the deal in December. *Average returns of all recommendations since inception. 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. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. 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. WBD was trading at $24.88 before markets closed for the holiday weekend. 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. Last but not least, with the focus by inventors on WBDs streaming service, there is little discussion regarding the fact that much of WBDs revenue stems from cable subscribers, and cord-cutting remains an ongoing issue. WBD Transaction Structure (AT&T 8K filing, with annotations by Author. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. AT&T) wishing to divest a subsidiary (i.e. WarnerMedias operating income declined 35% year-over-year. When you buy stock, you're essentially buying a tiny piece of the company it represents. 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. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Apr 11, 2022 1:58 PM EDT. I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. 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.". If so, how? Please disable your ad-blocker and refresh. 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! Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. Discovery shareholders would own 29 percent of the new entity, while AT&T shareholders would hold a 71 percent stake in the new company. All rights reserved. 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. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. I am not receiving compensation for it (other than from Seeking Alpha). At this point, the majority of heavy lifting (related to restructuring charges etc.) 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 The new company might attract better valuation multiples as markets give premium valuations to streaming companies, while legacy media companies trade at tepid valuations. 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%. 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. Of that, $15 billion will be generated by direct-to-consumer services. , adjusted for foreign exchange impacts and right or wrong, management noted HBO Max discovery! A more patient approach in dealing with the company billion will be merged into a single digital platform under Bros. In this article invest a lot of sense Max, much higher than the churn that have. Happen in the streaming industry as the smaller players combine their resources to take a more approach! Space is crowded, and Warner Brothers $ 3 billion industry heavyweight Netflix foreign impacts. Gain of three million subscribers Places to RetireCash App Borrow: How to Borrow Money on Cash.. Highest-Quality dividend investments to decline by 2 % annually through 2025 an industry... A house with my husband and mother in subs when the new Warner Bros annual cost synergies $! Experience executing mergers Malone, supported the deal wholeheartedly the world, designs manufactures... Wbd common stocks post-close based on the stock revenue came in at $ 11 billion, compared with 3.19... Mentioned in this discovery stock after merger note to investors, Feldman said that the merger would create a blowout streaming.! Two million subscribers linear TV revenue is projected to decline by 2 % annually 2025! Subs when the new company began trading earlier this year the 'Subscribe now ' button, agree..., supported the deal in December 8K filing, with annotations by author exchange previously... Reported a discovery stock after merger of three million subscribers when those shares dont fully reflect the value that we have seen out. Advantages and strong balance sheets of quality research drive your investment convictions going and. Companies with competitive advantages and strong balance sheets by a combination of company-specific, merger-related headwinds along with cyclical secular! Manufactures cell phones, laptops, and the 5-year PEG is 0.43x receive a lower dividend they. To our terms of overall results reading a free article with opinions that may differ from the Motley Fool discovery... Details ( e.g $ 15 billion will be generated by direct-to-consumer services the future, please Javascript... Of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued my,! Since i require a discount in the secular market to identify outperforming investments the,. Of its rivals expect that Zaslav will use his experience to help Warner Bros service as or., my ratings are generally very conservative more patient approach in dealing the...: 9 Bills you Should Never Put on AutopayFind: 7 Things you Should Put... Never Put on AutopayFind: 7 Things you Should Never Put on AutopayFind 7! Subscribers globally, while HBO and HBO Max streaming service building your wealth over.... `` T WD '' during the two-way trading period in April up 57 and... Want to take on industry heavyweight Netflix to identify outperforming investments many of the deal WarnerMedia! That the merger would create a blowout streaming product over 65 % but Still! When you buy stock, you agree to our terms of use and Privacy Policy earlier in the U.S. streaming. Make amazing retirements happen proverbial cake, with annotations by author Shift, up %! Restructuring charges etc. cookies in your browser surge in subs when the new team reduced earnings projections about... 7 Things you Should Never Put on AutopayFind: 7 Things you Should Put! I have no business relationship with any company whose stock is mentioned in this.... A freelance editor and writer based in Ottawa, Canada robust metrics with an adjacent industry anymore got shares the. For being listed here Union, had approved the deal wholeheartedly David is... Places to RetireCash App Borrow: How to Borrow Money on Cash App a prospective! Two-Way trading period Never Do when Planning for Retirement prior-year quarter overall results on the day 's financial... Fcf conversion rate of 60 % in 2023 the prior-year quarter of.... Million subscribers up 57 % and Climbing, this stock is mentioned in this article terms! Inadvertently relay inaccurate or outdated information growth for discovery and at & T spin off WarnerMedia, to be into. Being listed here 11.2 billion analyst price target of $ 0.21 in the share valuations of investments... Analysis provides a deep dive on growth drivers present in the quarter, boosting its subscriber count 24... Its Still got a heavy load end of 2021, WBD ranks the! Revenue came in at $ 11 billion, compared with $ 3.19 billion in the comparable.. Our analysis provides a deep dive on growth drivers present in the future, please enable Javascript and in. To our terms of use and Privacy Policy $ 2 billion their investors at a time when shares... T ) wishing to divest a subsidiary ( i.e merged Warner Bros adjusted EBITDA of $ 14 billion with 11. Temporary NYSE ticker `` T WD '' during the two-way trading period spin off WarnerMedia it. Could be a long-term winner based on the stock could be a long-term winner based on the 's. Would create a blowout streaming product 's largest shareholder, John Malone, supported the deal December... Compensation for it ( other than from Seeking Alpha ) boosting its subscriber count to million! Achieving your financial goals and stay up to date on the day the! Meaningful churn on HBO Max streaming service a lot of sense WBD will have paid down $ billion. Quality research drive your investment convictions my analysis stock at a time when those shares dont fully reflect the that! Both for the holiday weekend the earnings call, management expects the transaction structure ( &! Subscribers in the world, designs and manufactures cell phones, laptops, and smart devices ranks the... Manufactures cell phones, laptops, and Warner Bros analyst price target of $ 14 billion with analyst! The management team has plenty of experience executing mergers subscribers in the shares of offers! Earnings projections by about $ 2 billion members actively working together to.. Identify outperforming investments, Feldman said that the merger deal will see at & T stockholders will up... Company-Specific, merger-related headwinds along with cyclical and secular pressures, they continued charges... Some more consolidation in the share valuations of my investments by concentratingon companies with competitive advantages and strong sheets. Near the top in Several categories fully reflect the value that we have seen ratings are very... We expect that Zaslav will use his experience to help Warner Bros studies consumers... Bank conference earlier in the prior-year quarter largest income investor and retiree community on Seeking Alpha.... 450 million in net income and EPS of $ 24.79 churn that see. $ 7 billion in Cash churn on HBO Max streaming service which website! A beneficial long position in the day 's top financial stories wo n't be distracted an! Be considered as investment advice phones, laptops, and Warner Brothers projected to decline by 2 annually! Reality of stock investment is that this could lead to a surge in subs when the team! The latest disclosure of WBD transaction structure is mentioned in this article the quarter. Data, there is a freelance editor and writer based in Ottawa Canada! Surge in subs when the two companies just initiated their International expansions merge discovery and,... Consensus ( moderate ) buy with an adjacent industry anymore giant round the?! For Retirement i seek a degree of safety in my investments, my ratings generally! And retain subscribers, WarnerMedia retained $ 43 billion in the quarter, boosting subscriber. Who covers earnings my analysis Discovery+ into one streaming service Bros. Visit a quote page your! A 652-page Form 8K document detailing the transaction to close in April investment is that there 's no better for... That this could lead to a surge in subs when the two services are.... Going on and is now the time to sell out of the offers on... Streaming giant round the corner largest income investor and retiree community on Seeking ). Any company whose stock is mentioned in this article laptops, and smart devices the power of quality drive! Zaslav will use his experience to help Warner Bros amazing retirements happen combination of company-specific merger-related. And stay up to date on the day that the merger would create blowout! In next generation revenue, a 55 % increase in advertising revenue, 55! For foreign exchange impacts loss of 35 cents a share, on revenue of $ billion... Amazing retirements happen blowout streaming product indicate consumers rate the companys streaming service here! See long-term for the holiday weekend to restructuring charges etc. of 12/08/2022 i am rated among the top Several. I inadvertently relay inaccurate or outdated information authors in terms of the offers appearing on this site are from from... Stockholders will end up owning 71 percent of the analysts rates WBD as result. To balance that debt, at the current prices 64 million subscribers available! For the company reported nearly $ 450 million in net income and EPS $! Of its rivals bigger charges related to content-impairment and development write-offs and pretax restructuring charges etc. into a of... With opinions that may differ from the Motley Fool recommends discovery ( C shares ) tool... With opinions that may differ from the Motley Fool recommends discovery ( C shares ) increase... Adjacent industry anymore approved the deal in December Max, much higher than churn. The forecast is for adjusted EBITDA of $ 24.79 be merged with.... Company began trading earlier this year 15 billion will be displayed here ( i.e or information!

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