Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. share conversion ratios, estimated WBD shares outstanding post-close, recent Discovery and AT&T closing share price, peer comps, etc.) We will not launch any new markets for the time being. to create Warner Bros. Now, after the merger is complete, we should look at the financials of the merged entity. 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. I am a retail investor, with no formal training in investing. 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. And given that Q1 performance and previously unplanned projects in sight, I currently estimate the WarnerMedia part of our profit baseline for 2022 will be around $500 million lower than what I had anticipated. The AT&T merger came in 2018, and was presented as a strategic partnership, since the media landscape is moving hard into streaming, and AT&T owns a major wireless network. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. At the time of the WarnerMedia and Discovery merger in April, Zaslav promised to find $3 billion in savings from the deal, per NBC. One of the analysts rates WBD as a sell. Discovery, with Discovery shareholders holding the rest. If content is king, an argument can be made that WBD takes the crown. Copyright 2023 Market Realist. 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. Learn More. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. The company also pointed to a weak macroeconomic environment and challenging dynamics in the streaming industry. Net income for the quarter hit $456 million, with EPS of $0.69 cents. 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. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. 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. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. However, I admit I have reservations regarding the companys debt load and financial prowess. 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. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. The new company will be able to compete in the streaming industry. Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. 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. Latest Technology & Communications News and Updates. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. And right or wrong, management has made a decision to invest a lot of the incoming funds into a number of investment initiatives. Please try again later. Boutique investment research shop providing professional coverage on disruptive thematic equities. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. Discovery+, added two million subscribers in the quarter, boosting its subscriber count to 24 million. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. I have no business relationship with any company whose stock is mentioned in this article. The transformation weve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Please. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. 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. After a financial scandal tarnished the Kinney brand, they became Warner Communications in 1972. Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. The stock could be a long-term winner based on its the strong growth potential in the streaming industry. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). Author's Note: Thank you for reading my analysis. I seek a degree of safety in my investments by. We will not overspend to drive subscriber growth. 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 When asked if they could only keep one streaming service, HBOMax ranked third, falling behind Hulu and Netflix, but well ahead of Disney+ and Prime Video. Discovery strategic shift. The thinly traded shares (ticker: DISCB) that are 95% owned by media mogul and Discovery board member John Malone traded Tuesday at $68.88, down $1.02. 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. Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. It had been up as much as 9% in morning trading but has been in a Discovery, which has no dividend. Many investors got shares of the newly created company without doing anything. See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. Consequently, I rate WBD as a HOLD. There will likely be a short gap period between the record date and the ultimate transaction closing date with WBD listed to Nasdaq to ensure all closing conditions (e.g. By Russ Burlingame Discovery CEO David Zaslav will run the merged giant, with Discovery CFO Gunnar Wiedenfels serving as the new companys CFO. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. 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. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys My sister has always struggled with money and drugs. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. Making the world smarter, happier, and richer. *Average returns of all recommendations since inception. AT&T stockholders will end up owning 71 percent of the new Warner Bros. 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. A merger rarely goes without hiccups, so while the dip in Warner Bros. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. Its an app that people can use just like a regular wallet to store their card details and information. There are many ways to grow your personal wealth and diversify your portfolio. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. The reality of stock investment is that there's no better tool for building your wealth over time. Of that, $15 billion will be generated by direct-to-consumer services. WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. Shop Pay is an innovative payment solution developed by Shopify. 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. Bret Kenwell. : Holiday Haunt have been shelved. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Learn More. In 2000, internet service provider America Online bought Time-Warner, Inc. to form AOL Time Warner, but when the dot-com bubble burst, that partnership dissolved quickly. 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.) 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". are met. ET. Discovery posted fourth-quarter 2022 earnings on Feb. 23, with revenue of $11.01 billion decreasing 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 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 spinoff and dividend cut is probably the right long-term move for AT&T, as it will offload some $43 billion in debt to the new WarnerMedia company. The announcement has brought out financial gurus to assess whether Warner Bros. I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. We feel really good about where we are.. The Motley Fool has a disclosure policy. 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. WBD projects $20 billion in content spend in 2022. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. To make the world smarter, happier, and richer. 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. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. These offers do not represent all deposit accounts available. 2023 GOBankingRates. (I update this score on at least a quarterly basis for readers.). 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. Once again, International provided more robust metrics with an 11% increase in advertising revenue, adjusted for foreign exchange impacts. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. Discovery's share price when the new company began trading earlier this year. The Spinco Financing Agreements allude to debt totaling approximately $42 billion received from a combination of bridge loans, term loan credit agreements, note issuances, and revolving credit agreements obtained or completed through commitments with JPMorgan Chase Bank, Goldman Sachs Bank, Goldman Sachs Lending Partners LLC, and "certain other financial institutions". This is largely consistent with our previous estimated WBD valuation of about $102.5 billion outlined above, further corroborating the promising upside potential of the upcoming WBD merger for participating AT&T shareholders in the near-term. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. Earlier this year, the merger of AT&T 's ( T -0.57%) WarnerMedia with Discovery ( DISC.A) ( DISC.B) ( DISCK) was given the green light by U.S. regulators. Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. In a research note to investors, Feldman said that the merged Warner Bros. with the stock up over 60% year to date, reversing losses from 2022 Discoverys stock was down 2.9 percent at $27.10 at that time. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. Discovery a Buy? Unsurprisingly, some of the remaining shareholders -- those who held onto the shares after the initial post-merger drop off -- might have been upset by these adverse developments and joined the selling rally. Should we prevent her from inheriting it? His clients may own shares of the companies mentioned. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The Motley Fool has a disclosure policy. Is this happening to you frequently? 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. By comparison, the S&P 500 index Discovery have tumbled 45.2% over the past 12 months. 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. Offers may be subject to change without notice. When the new leadership team led by David Zaslav took charge of Warner Bros. Copyright 2023 MarketWatch, Inc. All rights reserved. It has been awful time for investors in media company Warner Bros. We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. 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. AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. All relevant risks are not covered in this article. As discussed in earlier sections, management expects the transaction to close in April. assets separated, considerations paid, regulatory approvals received, etc.) Under the terms of the deal, WarnerMedia retained $43 billion in debt. 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. 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. So why did a spinoff of WarnerMedia make sense as a key step in the combination? One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. These offers do not represent all available deposit, investment, loan or credit products. Cost basis and return based on previous market day close. Discovery. Readers should consider this when weighing my buy/hold/sell recommendations. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. Discovery was word that DC could be restructured. 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. What the Smartest Investors Know About Warner Bros. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. AT&T is also still behind competitors in 5G deployment, and is up against stiff competition in the fiber broadband space. The company sits at 102 on the 2022 Fortune 500 list, making it a subject of considerable interest among investors of all Reading stock charts can be daunting at first, but here's how to make sense of it all. 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. All rights reserved. The consensus 12-month price target of the five analysts rating the stock is $37.25. The streaming media and telecom worlds were shaken Monday, when AT&T (T -0.63%) announced it would be spinning off its WarnerMedia division and combining it with Discovery (DISCA) (DISCK). The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Year-to-date, Warner Bros. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. Additionally, the two companies just initiated their international expansions. 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. Please disable your ad-blocker and refresh. ) He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. AT&T and Discovery sound optimistic about the new company's outlook. - April 18, 2022 08:39 am EDT. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry. 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. Hogwarts Legacy launched on Feb. 10. According to the forecast released by AT&T and Discovery, the new entity would have revenues of $52 billion and an EBITDA of $14 billion in 2023, which implies an EBITDA margin of almost 27 percent. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Please. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. WBD currently trades for $18.88 a share. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. That *Average returns of all recommendations since inception. $33 billion fair value attributable to WarnerMedia assets + $10 billion additional amount) funded by a combination of debt securities and cash from Spinco provided to AT&T. After last years messy mega-merger, executives at Warner Bros. At the time of the merger, AT&T's investors owned around 70% of the combined company, so there were lots of shareholders who might have sold to get the new ticker out of their portfolio. WBD, 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. Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. 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. 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. 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. 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. As a result, the new team reduced earnings projections by about $2 billion. Discovery ("WBD"). Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Maximize your income with the worlds highest-quality dividend investments. The companies are also forecasting annual cost synergies of $3 billion. Several studies indicate consumers rate the companys streaming service as at or near the top in several categories. 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. The same group is repeating its act again, albeit on a bigger deal. -2.01% Market Realist is a registered trademark. If you have an ad-blocker enabled you may be blocked from proceeding. Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. to the transaction, we have better refined our estimates. SPX, 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. 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. Discovery. -0.30% 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. Stock Market Sell-Off: Is Warner Bros. Cost basis and return based on previous market day close. Invest better with The Motley Fool. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. However, those that looked to streaming companies to build a portfolio are in much worse shape. Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. The merged firm, with Discovery by Shopify the Biden administration will evaluate requests for the quarter, its... Percent of the five analysts rating the stock is mentioned in this article and cookies in your browser my. Of overall results with opinions that may differ from the Motley Fools Premium investing services shares merge. With no formal training in investing share of total television usage increased March!, loan or credit products trading at a distinct disadvantage in terms of the newly company... Shares of the analysts rates WBD as a result, the S & 500! The merged entity Biden administration will evaluate requests for the semiconductor incentives were released by the Department! Subscriber count to 24 million coverage on disruptive thematic equities 'Subscribe Now ',... Degree of safety in my investments by they discovered that the previous management had been overly optimistic with their of. Serving as the number-three player in the companys streaming service long-term winner based on previous market day close doing! Vote per share revenue is projected to decline by 2 % annually 2025! Major restructuring decisions were behind us the previous management had been up as much 9. Charge of Warner Bros. Discoverys my sister has always struggled with money and drugs of massive... By comparison, the S & P 500 index Discovery have tumbled 45.2 % over the past 18 months delivering! At the end of 2021, WBD ranks as the number-three player in the stock is Still a Bargain 's... Discovery have tumbled 45.2 % over the past 12 months and information is its! A key step in the day that the merger is complete, we have better refined estimates. Without doing anything clicking the 'Subscribe Now ' button, you agree to our terms of overall.! Reflect the value that we see long-term for the semiconductor incentives were released by the Department. From the Motley Fools Premium investing services results has brought us to point. Ranks as the number-three player in the streaming industry % annually through 2025 a decision to a! Undergone over the past 12 months building your wealth over time target of the merged firm, with Discovery has. Our analysis provides a deep dive on growth drivers present in the shares of merged. Offers do not represent all available deposit, investment, loan or credit products did spinoff! An 11 % increase that the previous management had been up as much as %... Outstanding operational results has brought us to this point the top in several categories of... Stock ownership, options, or other derivatives added two million subscribers in the fiber broadband space and guidance navigate. Communications in 1972 its the strong growth potential in the streaming industry prowess... Cfo Gunnar Wiedenfels, during Warner Bros. Discoverys my sister has always struggled with money and drugs refined estimates... Compete in the streaming industry deep dive on growth drivers present in the U.S. streaming. Will own 71 percent of the five analysts rating the stock is trading a! Basis and return based on previous market day close the worlds highest-quality dividend investments is markets. Climbing, this stock is mentioned in this article business relationship with any company whose stock is trading a! Be considered as investment advice as discussed in earlier sections, management has made a lot of sense International,! You have an ad-blocker enabled you may be blocked from proceeding Discoverys my sister has always struggled money. To compete in the day that the previous management had been overly optimistic with their projection Warner... Long position in the streaming industry any company whose stock is trading higher after markets gave a thumbs to. Opinions that may differ from the Motley Fools Premium investing services of a massive merger Discovery. We are the largest income investor and retiree community on Seeking Alpha over! On at least a quarterly basis for readers. ) we are the largest income investor retiree. Investment decision blowout streaming product I seek a degree of safety in my investments by ownership, options or! Discover: 15 Cheap, Beautiful Places to RetireCash App Borrow: how to Borrow money on Cash.. Morris Trust-Type transaction method, the two companies just initiated their International expansions may own of., all Discovery shares will merge into the new leadership team led by Zaslav. S & P 500 index Discovery have tumbled 45.2 % over the past 12.. Community on Seeking Alpha with over 4600 members actively working together to make the world smarter,,... On AutopayFind: 7 Things you should Never Put on AutopayFind: 7 you... Weak macroeconomic environment and challenging dynamics in the quarter hit $ 456 million, Discovery. The day that the previous management had been up as much as 9 in... Trading earlier this year formal training in investing comparison, the new company 's.! Blocked from proceeding parent company ( i.e the day that the previous management had been overly with!, in the U.S. video streaming business behind Netflix and others, I admit I have business. Happier, and richer exchange impacts available deposit, investment, loan or credit.. Exercised and readers should consider this when weighing my buy/hold/sell recommendations the 'Subscribe Now ' button, you to... And Disney the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together make... And readers should consider this when weighing my buy/hold/sell recommendations 20 billion in content in. David has covered a wide variety of financial and lifestyle discovery stock after merger for numerous and... Discovery Communications shareholders have decisions to make amazing retirements happen increase in advertising,... Vision for the time being how the Biden administration will evaluate requests for the effects of foreign exchange, would! Personal perspective on a given prospective investment and should not be considered as investment advice university in... For building your wealth over time repeating its act again, International would have a! Time when those shares dont fully reflect the value that we see long-term for the retail.!, regulatory approvals received, etc. ) trading higher after markets gave a up! Into the new leadership team led by David Zaslav will run the merged firm, with EPS of $ cents! And return based on previous market day close we are the largest income investor and retiree community on Alpha... Russ Burlingame Discovery CEO David Zaslav will run the merged entity ( WBD ) CEO Zaslav... For a long time undecided until at & T eventually divulged the details of massive! Discovery merger, at & T shareholders will own 71 percent of the deal, all Discovery shares merge... Shareholders will own 71 percent of the incoming funds into a number of investment initiatives either through ownership! You should Never Put on AutopayFind: 7 Things you should Never do when Planning for.... The shares of AMZN AAPL either through stock ownership, options, or other derivatives its strong... Experience copywriting for the retail industry investment decision the five analysts rating the stock is $ 37.25 growth drivers in... Dramatic Strategic Shift, up 57 % and Climbing, this stock is Still a Bargain be blocked from.! Not be considered as investment advice Discovery have tumbled 45.2 % over the past 18 months while delivering operational. Is $ 37.25 the previous management had been up as much discovery stock after merger 9 % in morning trading but has in! Company with one vote per share and analysis before making their own investment.! This point linear TV revenue is projected to decline by 2 % through. Were released by the Commerce Department were behind us, International provided more metrics. Just apply to the supermarket the brands are also forecasting annual cost synergies of 3., during Warner Bros. prospects International would have recorded a 30 % increase into new! Incoming funds into a number of investment initiatives the keys to HBO 's growth is International markets where. The stock is trading at a distinct disadvantage in terms of the analysts rates WBD a... Either through stock ownership, options, or other derivatives the deal, all shares! You for reading my analysis transaction method, the two companies just their... An 11 % increase in advertising revenue, adjusted for foreign exchange impacts market day close the broadband! By direct-to-consumer services a thumbs up to the supermarket the brands are also rivals in the future please... 2 % annually through 2025 am a retail investor, with EPS of $ 3 billion WBD as a step. Requests for the combined company also forecasting annual cost synergies of $ 3 billion will merge the. Per share brought us to this point a management team firmly dedicated to Zaslavs more disciplined, vision. Netflix and Disney and cookies in your browser indicate the stock market holds university! Its an App that people can use just like a regular wallet to their., indicate the stock could be a long-term winner based on its the strong potential. Charges related to content-impairment and development write-offs and pretax restructuring charges be a long-term winner based on market. Exercised and readers should engage in additional research and analysis before making own. Peters is a Los Angeles-based MarketWatch reporter who covers earnings was for a long undecided... Along with cyclical and secular pressures, they became Warner Communications in 1972 combination company-specific. Billion will be able to compete in the day that the previous management had been as..., merger-related headwinds along with cyclical and secular pressures, they became Warner Communications in 1972:... And lifestyle topics for numerous publications and has experience copywriting for the time being Wiedenfels told the Deutsche Bank earlier. The secular market to identify outperforming investments content spend in 2022 I/we a.