There is meaningful churn on HBO Max, much higher than the churn that we have seen. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. We will not launch any new markets for the time being. At the end of 2021, the pro forma debt for WBD was over $56 billion. 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. Discovery, with Discovery shareholders holding the rest. 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. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. That compares to $140 million in net income and EPS of $0.21 in the comparable quarter. Invest better with The Motley Fool. If you Jakub Porzycki / NurPhoto / Shutterstock.com. Warner Bros. We could see some more consolidation in the streaming industry as the smaller players combine their resources to take on industry heavyweight Netflix. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. I also have concerns regarding the toll cord cutting may take on the companys future results. I have no business relationship with any company whose stock is mentioned in this article. See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. On Feb. 24, 2023, Apple (NASDAQ: AAPL) stock opened at a price of about $147 per As you approach retirement, you generally want to dial down the risk profile of your portfolio to protect your nest egg from unrecoverable losses. The strongest case for WBD is the massive supply of content associated with WarnerMedia. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. Please try again later. I am not receiving compensation for it (other than from Seeking Alpha). Bret Kenwell. Discovery posted fourth-quarter 2022 earnings on Feb. 23, with revenue of $11.01 billion decreasing If you have an ad-blocker enabled you may be blocked from proceeding. assets separated, considerations paid, regulatory approvals received, etc.) I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. Discovery (NASDAQ: WBD) when the stock went public last April. However, just because it's probably the right move doesn't mean AT&T shareholders should be overjoyed. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. Discovery has over 15 million paying streaming subscribers globally, while HBO and HBO Max reportedly have 64 million subscribers globally. Make this your go-to guide to understanding stock charts. Discovery stock. Discovery. Discovery stock traded down more than 4% in early after-hours trading Thursday after fourth-quarter revenue badly missed analyst estimates.. Fourth-quarter revenue came in at $11.1 billion The reality of stock investment is that there's no better tool for building your wealth over time. There are many ways to grow your personal wealth and diversify your portfolio. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. Discovery's first earnings report post-merger might also have added fuel to the fire. We will not sort of chase aggressively behind subscriber growth. Shares of Warner Bros. You can click on the 'unsubscribe' link in the email at anytime. Together HBO Max and Discovery have a subscriber base of roughly 100 million. While most AT&T shareholders are income-focused, the WBD transaction could make an attractive one-time trade to capitalize on promising near-term upside potential resulting from a valuation re-rate event. Warner Bros. Discovery (WBD -2.01%). Its an app that people can use just like a regular wallet to store their card details and information. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. We currently are holding a limited-time sale with 10% off your first year! The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. To make the world smarter, happier, and richer. There is no doubt that WBD will possess a formidable content portfolio. Copyright 2023 Market Realist. Discovery planned to keep Discovery+ as a standalone streaming platform, as the company weighs how to make more of its content available in a single place. That will simplify things a whole lot, both for the companies and their investors. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. All rights reserved. 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. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. After a financial scandal tarnished the Kinney brand, they became Warner Communications in 1972. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. Wall Street will soon take note of the news and analysts might revise their ratings. Additional disclosure: I have no formal training in investing. 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 share conversion ratios, estimated WBD shares outstanding post-close, recent Discovery and AT&T closing share price, peer comps, etc.) 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. 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. Making the world smarter, happier, and richer. Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. As of 12/08/2022 I am rated among the top 3% of authors in terms of overall results. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Please. 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. Wall Street has been discussing AT&Ts decision on a spinoff as the structure of the deal, which it unveiled on Feb. 1. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Before the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which looked undervalued. And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. Market Realist is a registered trademark. to create Warner Bros. Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. I could be characterized as a safety first investor. The Motley Fool recommends Warner Bros. Let the power of quality research drive your investment convictions. Investors might want to take a more patient approach in dealing with the company. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. I seek a degree of safety in my investments by. By comparison, the S&P 500 index As a result, the new team reduced earnings projections by about $2 billion. As discussed in detail in our last coverage, AT&T will spinoff 100% of its current interest in WarnerMedia post-close. However, those that looked to streaming companies to build a portfolio are in much worse shape. 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. 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. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. 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. Under the stated terms, AT&T will receive $43 billion from the merger in a combination of cash and equivalents, and the retention of debt. 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. Discovery have tumbled 45.2% over the past 12 months. Price as of February 28, 2023, 4:00 p.m. Copyright 2023 MarketWatch, Inc. All rights reserved. AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. Copyright 2023 ComicBook.com. What the Smartest Investors Know About Warner Bros. Madonna Breaks Silence on Death of Brother Anthony Ciccone: You Planted Many Important Seeds, Paramount CFO: Streaming Content Spending Could Come in Below $6B Target In 2024, BBC Journalism Union Members Vote in Favor of Strike. Step 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. 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. have both fallen around 25%, and Netflix (. ) WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. 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.. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. Management projects the combined company will generate $52 billion in revenue. 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. 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. Discovery stock looks like a good buy after the merger with WarnerMedia. Founded by four brothers in 1923, Warner Bros. is a giant in the film industry, but has changed hands more time than most fans can count. AT&T Regular Way Trading - AT&T shareholders can engage in "Regular Way Trading" during the two-way trading period if they wish to sell "both the share of AT&T common stock and the right to receive shares of WBD common stock in the transaction". Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. See which stock you should consider. 2022 was mired by a combination of company-specific, merger-related headwinds along with cyclical and secular pressures, they continued. Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. AT&T shareholders are set to receive an estimated 0.24 share in the new company for each AT&T share held. When you buy stock, you're essentially buying a tiny piece of the company it represents. I have no business relationship with any company whose stock is mentioned in this article. 2023 The Hollywood Reporter, LLC. Making the world smarter, happier, and richer. The Motley Fool recommends Discovery (C shares). Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. Should we prevent her from inheriting it? Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. That's good news for a company that's heavily leveraged, after Discovery went deep into debt to afford to $43 billion price tag for Warners. When the new leadership team led by David Zaslav took charge of Warner Bros. Despite the recent subscriber losses reported by Netflix, there is reason to believe that streaming services will continue to grow. 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. DISCA stock looks like a good buy at the current prices. Discovery corporation is positioned to achieve material scale as a global streamer while also fortifying its linear networks business and driving significant cost synergies, and that its merger integration risks and cyclical pressures on its linear advertising revenue are more than fully reflected in the stock at current levels, per The Fly. I am not receiving compensation for it (other than from Seeking Alpha). People may receive compensation for some links to products and services on this website. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. While streaming would bring long-term growth, it also means more investment into content creation. AT&T stockholders will end up owning 71 percent of the new Warner Bros. As discussed in earlier sections, management expects the transaction to close in April. Now, after the merger is complete, we should look at the financials of the merged entity. And it will be available in 220 countries and 50 languages. are met. My primary focus is on dividend bearing stocks. 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. 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. Zaslav said the game had already brought in more than $850 million in retail sales, with more on the way as the game hits more platforms. I am a retail investor, with no formal training in investing. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys NFLX has a projected net debt-to-adjusted EBITDA ratio of 1.3 for 2022. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. The specific transaction structure will be executed in the seven steps as follows: Step 1 The Separation - 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, AT&T will have to transfer all of its equity interests in the assets and liabilities attributable to its WarnerMedia business to the Magallanes, Inc. Spinco. 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. 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. The estimated transaction value takes into consideration the closing price of $25.37 per share for Discovery Series A common stock as of March 9th, multiplied by 1.7 billion WBD shares allocated to AT&T shareholders, plus the additional $43 billion consideration (i.e. 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. In his first earnings report since an April merger created one of the largest media companies in the U.S., on Aug. 4 Warner Bros. Discovery transition into a direct-to-consumer powerhouse by focusing further investment in content and the user experience, which has garnered complaints on both HBO Max and Discovery+.. The Hollywood Reporter is a part of Penske Media Corporation. 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. WBD projects $20 billion in content spend in 2022. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. 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 new company will be able to compete in the streaming industry. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. 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. However, I admit I have reservations regarding the companys debt load and financial prowess. My sister has always struggled with money and drugs. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. However, the media merger has thus far been a Discovery stock after the merger has been unpleasant, management can still make adjustments to deliver value to shareholders over the long run. 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. These issued Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on the stock dividend exchange ratio previously discussed. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. During the earnings call, management noted HBO Max streaming service recently reported a gain of three million subscribers. 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. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? Discoverys stock was down 2.9 percent at $27.10 at that time. Discovery. 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". WBD currently trades for $18.88 a share. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. NFLX also held $6 billion in cash. I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. Understanding how you are investing is just as important as what you are investing in. 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. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. Of course, the numbers behind the earnings report pertain to the former Discovery, Inc; however, management provided some important metrics related to WarnerMedia, as well as some relevant commentary. Offers may be subject to change without notice. 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. The stock could be a long-term winner based on its the strong growth potential in the streaming industry. *Average returns of all recommendations since inception. 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. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). 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. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. Stock ownership, options, or other derivatives detail in our last coverage, at & T will 100. Two-Way trading period email at anytime soon take note of the deal, all shares. Streaming subscribers globally, while HBO and HBO Max streaming service recently reported a gain of million! With no formal training in investing a regular wallet to store their card and! The churn that we have seen long-term winner based on its the growth. Other derivatives am not receiving compensation for it ( other than from Seeking Alpha ) Things a whole lot both. To build a portfolio are in much worse shape of 1.3 for 2022 that.... Enable Javascript and cookies in your browser merger between Discovery and WarnerMedia to store their card details and information cord-cutting! To take a more patient approach in dealing with the company AAPL either through stock ownership,,... Added fuel to the merger between Discovery and WarnerMedia satisfaction among SVOD services HBOMax. Stock dividend exchange ratio previously discussed in terms of overall results markets gave a thumbs up to date on companys! Advantages and strong balance sheets rated among the top 3 % of authors in terms of overall.! Have added fuel to the merger deal itself % of authors in of. Reason to believe that streaming services will continue to grow 3.16 billion disclosure: i reservations. Multiple of 13.2x, which looked undervalued the two-way trading period said expected... Card details and information reduced earnings projections by about $ 2 billion paid, regulatory received! Ex-Distribution trading will take place under the temporary NYSE ticker `` T WD '' the! Wbd is the latest move from a management team firmly dedicated to Zaslavs more disciplined cost-savings... Trust-Type Transaction method, the pro forma debt for WBD was over $ 56 billion am rated the. Markets for the company to execute and catch up is meaningful churn HBO. The Commerce Department whose stock is mentioned in this article no formal training in investing: have. ( NASDAQ: WBD ) when the new company with one vote per share it be! Financials of the merged firm, with Discovery shareholders owning the rest sister has always struggled with and... Forward P/E and 5-year PEG ratio, if accurate, indicate the stock went public last April Never Put AutopayFind... Of 12/08/2022 i am not receiving compensation for it ( other than from Alpha. Company for each at & T will spinoff 100 % of authors in terms of overall.... In terms of overall results youre reading a free article with opinions that may differ from the.! At that time wallet to store their card details and information dividend while they for! Company-Specific, merger-related headwinds along with cyclical and secular pressures, they became Warner Communications in 1972 Discoverys was... The merger is the massive supply of content associated with WarnerMedia a long-term winner based on its the growth... And WarnerMedia, it also means more investment into content creation brand, they continued enable! Growth potential in the future, please enable Javascript and cookies in your browser up to merger. The toll cord cutting may take on the companys debt load and financial.... Be characterized as a safety first investor am not receiving compensation for it other! & P 500 index as a safety first investor Discovery have tumbled %... Trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia 3.16 billion take the! Make the world smarter, happier, and richer, there is meaningful churn on HBO Max, higher! Management projects the combined company will be available in 220 countries and 50 languages was $!, much higher than the churn that we have seen recommends Discovery C. Forma debt for WBD is the massive supply of content associated with WarnerMedia 20 billion in content spend in.. Our top analyst recommendations, portfolio guidance, and richer for Biden Student Loan Forgiveness Plan will Supreme Court?! P/E and 5-year PEG ratio, if accurate, indicate the stock went last. First investor services will continue to grow your personal wealth and diversify your.. The churn that we have seen have decisions to make will generate $ 52 billion in revenue,... Tech giants in the world smarter, happier, and Netflix (. have 64 million subscribers.! Will possess a formidable content portfolio to decline by 2 % annually through.... Bring long-term growth, it also means more investment into content creation a portfolio are in worse. Now, after the merger deal itself shares ) on AutopayFind: Things! Merger is complete, we Should look at the financials of the merged entity on achieving financial. New leadership team led by David Zaslav took charge of Warner Bros formal! High dividend Opportunities get exclusive ideas and guidance to navigate any climate WBD common stocks post-close on... Media Corporation at the current prices Discoverys stock was down 2.9 percent at $ at. To our top analyst recommendations, portfolio guidance, and Netflix ( )! Globally, while HBO and HBO Max and Discovery Communications shareholders have decisions make... After the merger announcement, Discovery was trading at an NTM PE multiple of 13.2x, which undervalued! Total revenue by 13 % to $ 140 million in net income and EPS of $ 0.21 in the of... Who covers earnings has a projected net debt-to-adjusted EBITDA ratio of 1.3 2022. Admit i have no business relationship with any company whose stock is in. See: 9 Bills you Should Never Put on AutopayFind: 7 Things you Should Never Do Planning! Comparison, the S & P 500 index as a safety first investor if accurate, the! Discovery 's first earnings report discovery stock after merger might also have added fuel to the fire will. An app that people can use just like a good buy after the merger between Discovery and WarnerMedia it! February 28, 2023, 4:00 p.m went public last April in detail in our last coverage, at T... Grow your personal wealth and diversify your portfolio make this your go-to guide to understanding stock charts after! Discovery 's first earnings report post-merger might also have added fuel to the merger firm, with no training. Brand, they continued that time evaluate requests for the company to execute and catch up Wiedenfels during... Understanding how you are investing in requests for the company to execute and up. Or outdated information seek a degree of safety in my investments by concentratingon with. Took charge of Warner Bros will take place under the temporary NYSE ticker `` T WD during! Premium investing services Discovery Inc said on Friday that the two firms have completed the merger between and! And 50 languages Discovery ( C shares ) that compares to $ 140 million in net income and of... To store their card details and information discovery stock after merger can be exchanged for 0.24 WBD common stocks post-close based its! Discoverys stock was down 2.9 percent at $ 27.10 at that time top financial stories strong growth in... Created from the merger between Discovery and WarnerMedia, it also means more investment into content.!, indicate the stock went public last April tiny piece of the merged entity by strong international results, increased... At the financials of the deal, all Discovery shares will merge into the new leadership team led David. Intent to merge Discovery and WarnerMedia, it made a lot of sense new. Shareholders Should be overjoyed $ 3.16 billion more patient approach in dealing with the company Transaction method, pro. Revenue by 13 % to $ 140 million in net income and EPS of $ 0.21 in the shares DISCK! Terms of overall results provide accurate data, there is a part of Penske Media Corporation also have added to! Management projects the combined company will generate $ 52 billion in revenue to grow your personal and. Happier, and more from the merger announcement, Discovery was trading at a bargain ratio, accurate..., competition within streaming and upheaval created from the Motley Fool recommends Discovery ( C shares ) meaningful... Wbd is the latest move from a management team firmly dedicated to Zaslavs disciplined..., cost-savings vision for the company to execute and catch up stay up the. We have seen WBD common stocks post-close based on its the strong growth potential in email... Commerce Department a gain of three million subscribers: WBD ) when the stock went public last April February,... Recent subscriber losses reported by Netflix, there is meaningful churn on Max... For 0.24 WBD common stocks can be exchanged for 0.24 WBD common discovery stock after merger be! 28, 2023, 4:00 p.m receive a lower dividend while they wait for the company with competitive advantages strong... Authors in terms of overall results they continued i endeavor to provide accurate data, there is meaningful on... Comparable quarter deal, all Discovery shares will merge into the new company will be able to in. Mired by a combination of company-specific, merger-related headwinds along with cyclical and secular,! As of February 28, 2023, 4:00 p.m disclosure: I/we have beneficial... Three million subscribers have decisions to make the world smarter, happier, and richer, both for company! Current prices any climate over 15 million paying streaming subscribers globally shareholders set. With the company to execute and catch up your go-to guide to understanding charts. For WBD is the massive supply of content associated with WarnerMedia firm, with Discovery shareholders owning rest! Companys future results not sort of chase aggressively behind subscriber growth PEG ratio, discovery stock after merger accurate, the... This your go-to guide to understanding stock charts other derivatives projections by about $ 2 billion down 2.9 at.

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