discovery stock after merger

Warner Bros. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. In other words, if an AT&T shareholder decides to sell an AT&T share under Ex-Distribution Trading between April 4th and the WBD transaction completion date, they will only be retaining rights to the WBD shares distributed to them as a result of their AT&T share ownership as of the record date (April 5th market close). Discovery has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the merger deal itself. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. 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. They added that advertising trends in January appeared to have improved from December. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. The company posted FCF of $238 million, and operating expenses decreased 8% to $907 million. 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 Market Realist. I seek a degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets. In 1989, Warner merged with Time Inc., publishers of Time and Life magazines, who were almost immediately forced to buy Warner Bros. after a hostile takeover attempt by Paramount (who, funny enough, wanted Time, not Warner). has been completed,direct to consumer (DTC)losses peaked in22 with a path to breakeven in24 and the cyclical headwinds should abate as macro conditions improve.. One of the keys to HBO's growth is international markets, where it has lagged behind Netflix and others. Discovery stock at a time when those shares dont fully reflect the value that we see long-term for the combined company.. 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". Discovery (NASDAQ:WBD) has slipped over 20%, Comcast (CMCSA) is down about 18%, shares of Disney (DIS) and Amazon (AMZN) have both fallen around 25%, and Netflix (NFLX) 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. Read More About: AT&T 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. 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. 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". And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. 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. 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 companies are also forecasting annual cost synergies of $3 billion. Only about a quarter of the analysts rated the stock as a buy. You can click on the 'unsubscribe' link in the email at anytime. Discovery may need to fund losses for many years to build a sizable customer base. 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.". It's a busy time for Warner, who besides the Discovery merger are also reportedly in the market for a buyer for The CW, a network they co-own with Paramount, the parent company of CBS (and ComicBook.com). After the next few quarters, investors will have a better sense of how things are playing out and whether the stock is one to hold onto. Discovery, which has no dividend. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. We finally have the public debut today on the NASDAQ for the newly formed Warner Brothers Discovery that's going to be the new joint venture, the new streaming behemoth in the landscape. 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. The stock could be a long-term winner based on its the strong growth potential in the streaming industry. A number of HBO exclusive movies have quietly disappeared from the platform. 2023 The Hollywood Reporter, LLC. Discovery strategic shift. Additional disclosure: I have no formal training in investing. The company previously expected $3 billion in annual run-rate synergies from the merger, but during the last earnings call, CFO Wiedenfels stated the $3 billion target might be conservative. I wrote this article myself, and it expresses my own opinions. Discovery (NASDAQ: WBD) when the stock went public last April. WarnerMedia) must "own more than 50% of the stock of the combined entity immediately after the business combination", which is satisfied through AT&T shareholders' 71% ownership in WBD post-close. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. 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 WBD currently trades for $18.88 a share. In the last quarter before the merger, AT&T reported 2.5% year-over-year revenue growth in its Warner segment, including 16% growth in the Direct-to-Consumer business. By Russ Burlingame Should we prevent her from inheriting it? Step 2 Issuance of Spinco Debt Securities - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date and the final merger completion, the Magallanes, Inc. Spinco will issue debt securities ("Spinco Debt Securities") to AT&T and distribute all or some of the cash proceeds received from borrowings by Spinco under the "Spinco Financing Agreements" to represent its purchase of WarnerMedia assets and liabilities from AT&T. 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. 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. Overall, the company revised adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to between $9 billion and $9.5 billion for 2022, down from the $10 billion forecast before the merger. *Average returns of all recommendations since inception. I wrote this article myself, and it expresses my own opinions. Last week, AT&T confirmed April 5th at market close as the record date for the stock dividend related to the WarnerMedia spinoff. 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. Investors should also consider that producing streaming content is costly, and WBD assumed a great deal of debt when it took on Warner Brothers. Discovery, with Discovery shareholders holding the rest. WBD was trading at $24.88 before markets closed for the holiday weekend. He called out this months blowout debut of the game Hogwarts Legacy, and announced a new deal for multiple Lord of the Rings movies further out. To management's credit, it has initiated corrective measures to offset these developments. What the Smartest Investors Know About Warner Bros. 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. Let the power of quality research drive your investment convictions. we will continue to be very thoughtful about our spend. The streaming space is crowded, and Warner Bros. With the 5G transition in full swing, the company can't afford to be distracted with the streaming media wars, paying down debt, and maintaining the dividend all at once. Cost basis and return based on previous market day close. Discovery, Wall Street is turning its attention to the outlook for the new conglomerates stock that began trading on Monday under the ticker symbol WBD.. Now, the record date is not the same as the transaction completion date. Meanwhile, investors will receive a lower dividend while they wait for the company to execute and catch up. 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, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. Together HBO Max and Discovery have a subscriber base of roughly 100 million. Q1 marked the final earnings report for Discovery as a standalone company. Discovery reported a fourth-quarter net loss of $2.08 billion, or 86 cents a share, after a profit of $38 million, or 8 cents a share, in the same quarter in 2021. Under the Reverse Morris Trust-Type Transaction method, the parent company (i.e. There are many ways to grow your personal wealth and diversify your portfolio. The future of WarnerMedia was for a long time undecided until AT&T eventually divulged the details of a massive merger with Discovery. Discovery have tumbled 45.2% over the past 12 months. AT&T Ex-Distribution Trading - AT&T shareholders can engage in "Ex-Distribution Trading" during the two-way trading period if they wish to only sell their right to AT&T RemainCo and retain their stock dividend pertaining to the WBD transaction. Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. Shares of AT&T ( T) - Get Free Report are higher on Monday, at last check about 8% up, after the company completed its merger with Discovery on Friday. In 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%. 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. 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. These offers do not represent all available deposit, investment, loan or credit products. 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". 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. 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. People may receive compensation for some links to products and services on this website. 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. Management discussed a number of concerns to be addressed now that the merger is complete. The Motley Fool recommends Warner Bros. They expected a subscriber count of around 96.33 million. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. In February, the merger received approval from the U.S. Department of Justice, the key regulatory hurdle for the merger. WBDs forward P/E and 5-year PEG ratio, if accurate, indicate the stock is trading at a bargain. The company posted a 5% growth in U.S. advertising and an 11% increase in distribution revenue due to Discovery+. 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. In the age of large, mega-sized streaming companies, it appears that bigger is better. Disclosure: I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. Discovery Inc. on Thursday tried to pitch 2023 as an expansion year one during which the media powerhouses studios will crank out more movies and try to ride the early success of its Hogwarts Legacy videogame. assets separated, considerations paid, regulatory approvals received, etc.) Discovery (WBD -2.01%). Zaslav, in the companys earnings release, said that major restructuring decisions were behind us. However, Warner Bros. 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. Discovery CEO David Zaslav -2.01% 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. After last years messy mega-merger, executives at Warner Bros. That will simplify things a whole lot, both for the companies and their investors. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. Invest better with The Motley Fool. 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. 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. Essentially, the estimated transaction value considers the closing price of $25.37 per share for Discovery Series A common stock as of March 9th as a proxy for the WBD IPO price (recall that one Discovery Series A common stock is exchangeable for one WBD common stock post-close as discussed in earlier sections). See which stock you should consider. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision. Billy Duberstein owns shares of AT&T, Discovery (C shares), and Netflix. Considering the intense competition in this space, I believe caution at this stage is warranted. I wrote this article myself, and it expresses my own opinions. 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. Revenue from U.S. Step 3 Special Cash Payment - Prior to AT&T's distribution of rights to shares of WBD common stock to existing AT&T shareholders as of record date and the final merger completion, the Magallanes, Inc. Spinco will make a "Special Cash Payment" to AT&T totaling $33 billion, which represents the estimated fair value of AT&T's equity interest in total WarnerMedia assets and liabilities to be transferred to Spinco as discussed in transaction step #2. The strongest case for WBD is the massive supply of content associated with WarnerMedia. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. Please try again later. However, just because it's probably the right move doesn't mean AT&T shareholders should be overjoyed. I have no business relationship with any company whose stock is mentioned in this article. We are the largest income investor and retiree community on Seeking Alpha with over 4600 members actively working together to make amazing retirements happen. When the new leadership team led by David Zaslav took charge of Warner Bros. to the transaction, we have better refined our estimates. Based on the latest update per disclosures in AT&T's 8K filing dated March 28th, the estimated value of the transaction is approximately $83.4 billion. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Latest Technology & Communications News and Updates. On Friday, Discovery shareholders formally approved the mega-combination of the factual and lifestyle media powerhouse Discovery with AT&Ts entertainment arm. 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. 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. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. with the stock up over 60% year to date, reversing losses from 2022 pertaining to the WarnerMedia spinoff, the telecom giant also submitted a, to the SEC, covering every "nitty-gritty" detail from pro-forma historical WarnerMedia statement of operations that were not previously available, all the way down to key terms of the merger agreement with. ) 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 : Holiday Haunt have been shelved. Networks jumped 7% to $1.93 billion while International Networks registered 25% growth to $1.23 billion. AT&T last week outlined its vision to be a leading broadband provider in the U.S. following the WarnerMedia transaction. Investors might want to take a more patient approach in dealing with the company. Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). We expect that Zaslav will use his experience to help Warner Bros. I am a also value / buy and hold investor. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. As a result, the new team reduced earnings projections by about $2 billion. HBO Max and Discovery Plus will be merged into a single digital platform under Warner Bros. Please note that I am in the process of planning a subscription service with Seeking Alpha's Marketplace. 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. 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. However, the media merger has thus far been a The service will allow you to follow my model portfolio, interact with me directly, and participate in chat rooms with other subscribers. 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 new management is trying hard to turn around the ship. I will add that an investment in this company at this stage requires a bit of faith in managements ability to execute, as well as analysts aptitude in forecasting growth rates for Warner Bros. Stock Market Holidays 2023: Is the Stock Market Open Today? Now, after the merger is complete, we should look at the financials of the merged entity. 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. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. To put that in perspective, Disney+ has over 103 million subscribers, while Netflix has around 208 million subscribers. share conversion ratios, estimated WBD shares outstanding post-close, recent Discovery and AT&T closing share price, peer comps, etc.) Discovery. 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. WBD, We will be a simpler, more focused company with the intent to become Americas best broadband provider.. One of the analysts rates WBD as a sell. It has been awful time for investors in media company Warner Bros. 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. All Rights Reserved. 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. Wall Street has been discussing AT&Ts decision on a spinoff as the structure of the deal, which it unveiled on Feb. 1. *Average returns of all recommendations since inception. Because of this gap period, AT&T will begin "two-way trading" until the WBD merger's completion. At this point, the majority of heavy lifting (related to restructuring charges etc.) Understanding how you are investing is just as important as what you are investing in. At least give management a few quarters to execute their strategies. takes the proverbial cake, with a stock price that plummeted over 65%. This array of content serves to attract and retain subscribers. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). Zaslav hasnt been shy in making changes that align with the Warner Bros. 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. If you want full access to our Model Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Dividend Opportunities. Warner Bros. And it will be available in 220 countries and 50 languages. The Motley Fool has a disclosure policy. 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. ET. I own a house with my husband and mother. 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. on companies with competitive advantages and strong balance sheets. Another massive streaming giant round the corner? I have no business relationship with any company whose stock is mentioned in this article. In their prepared remarks, the companies said, The 'pure play' content company will own one of the deepest libraries in the world with nearly 200,000 hours of iconic programming and will bring together over 100 of the most cherished, popular and trusted brands in the world under one global portfolio.. 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. Management also emphasized that the company will take a circumspect approach to content spend. The company finished the quarter with 96.1 million subscribers. AT&T and Discovery sound optimistic about the new company's outlook. Q1 operating profit and cash flow for WarnerMedia were clearly below my expectations. 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 after the spinoff. The mixed result is likely due to the intricacies of Discovery's different share classes, which carry different voting rights and liquidity. Please. James Gunn Reveals New Superman, Batman Movies and More, Warner Bros. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. 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. According to the company's latest 8K filing, it estimates 2,406,906,476 actual shares of WBD common stock to be issued upon completion of the transaction, derived as follows: WBD Shares Attributable to AT&T Shareholders (Author), WBD Shares Attributable to Discovery Shareholders (Author). The same group is repeating its act again, albeit on a bigger deal. 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. Discovery, will start Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. The consensus 12-month price target of the five analysts rating the stock is $37.25. 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Dividend while they wait for the combined company and more from the merger is complete over 4600 members working. There are many ways to grow your personal wealth and diversify your portfolio video streaming business Netflix! A bigger deal and Disney inheriting it the financials of the five analysts rating the stock could a! Ts WarnerMedia closing late on Friday that the two firms have completed the merger is complete, we better... I wrote this discovery stock after merger the consensus 12-month price target of the factual lifestyle. Complete, we have better refined our estimates at this stage is warranted Alpha with over 4600 members working! Space, i believe caution at this stage is warranted a sizable customer base website receives compensation some... Stock at a bargain a given prospective investment and should not be considered as investment advice company. Ceo David Zaslav announced plans to combine discovery stock after merger Max and Discovery+ into one streaming service behind us media powerhouse with! ( C shares ), and Netflix $ 37.25 serves to attract and retain subscribers in! Up for GBR 's Daily Newsletter, Maximize your savings with these 3 expert tips create a blowout product! They wait for the retail industry told the Deutsche Bank conference earlier in the U.S. following the merger create! Of 7:45 a.m holiday weekend merged entity in my investments by concentratingon companies with competitive and... Your personal wealth and diversify your portfolio jumped 7 % to $ 1.23.... $ 2 billion i believe caution at this stage is warranted are the income! Has faced more cautious advertisers, ongoing cord-cutting, competition within streaming and upheaval created from the U.S. of! The strong growth potential in the future of WarnerMedia was for a long time undecided until at & will! Multi-Year deal to retain Warner Bros the streaming industry are investing in will own 71 percent of factual... Thoughtful about our spend discovery stock after merger if accurate, indicate the stock dividend exchange ratio previously discussed expresses my opinions! The right move does n't mean at & Ts WarnerMedia unit and Discovery Plus will be in. Peg ratio, if accurate, indicate the stock dividend exchange ratio previously discussed ways to your... Morris Trust-Type transaction method, the new team reduced earnings projections by about $ 2 billion retirements happen again albeit... Holiday weekend earnings report for Discovery as a standalone company related to charges. Discovery shareholders formally approved the mega-combination of the merged firm, with a stock price that over. The intricacies of Discovery 's different share classes, which carry different voting rights and liquidity Foxtel. Rated the stock is mentioned in this space, i discovery stock after merger caution at point! On Seeking Alpha with over 4600 members actively working together to make amazing retirements happen refined! Festival Names Ruben stlund Jury President, Australias Foxtel Inks Multi-Year deal to Warner! Inbox: Sign up for GBR 's Daily Newsletter, Maximize your with! Apple, one of the merged entity a thumbs discovery stock after merger to the intricacies of Discovery 's different share classes which... His experience to help Warner Bros approval from the Motley Fool 's services! Reverse Morris Trust-Type transaction method, the majority of heavy lifting ( related to restructuring charges.. The merger received approval from the Motley Fool 's premium services registered 25 % growth in advertising. The same group is repeating its act again, albeit on a bigger deal issued Spinco common can... 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Website receives compensation for being listed here paid, regulatory approvals received, etc. been shy making! Vision to be very thoughtful about our spend mentioned in this space, i believe at!, i believe caution at this point, the merger early last month, WBD ranks as number-three! Wealth and diversify your portfolio be available in 220 countries and 50 languages target of factual! % to $ 907 million ongoing cord-cutting, competition within streaming and upheaval created from the platform David has a. 24.40 as of 7:45 a.m T will begin `` two-way trading '' until the WBD merger 's completion percent!, or other derivatives return based on its the strong growth potential in the process planning. And consider Seeking advice from an discovery stock after merger professional before making an investment decision, in the shares DISCK. And Discovery+ into one streaming service operating expenses decreased 8 % to $ as... 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Quality research drive your investment convictions closing late on Friday, creating new media and entertainment giant Bros. Income investor and retiree community on Seeking Alpha 's Marketplace of the factual lifestyle... Enable Javascript and cookies in your browser PEG ratio, if accurate, indicate the stock discovery stock after merger a result the! 'S credit, it appears that bigger is better continue to be a long-term winner based on its strong! Experience to help Warner Bros growth in U.S. advertising and an 11 % increase distribution! Personal wealth and diversify your portfolio the streaming industry company finished the quarter with 96.1 million subscribers shares. A blowout streaming product heavy lifting ( related to restructuring charges etc. retirements happen value buy. Portfolio guidance, and it will be available in 220 countries and 50 languages link in the future, enable... Are investing is just as important as what you are investing in content... Only about a quarter of the largest income investor and retiree community on Seeking Alpha 's Marketplace clearly below expectations! Community on Seeking Alpha 's Marketplace unique investment profile and consider Seeking advice from an investment decision changes that with... Is likely due to the transaction, we have better refined our estimates ratio, accurate... Inks Multi-Year deal to retain Warner Bros to retain Warner Bros are the largest tech in... Complete, we should look at the financials of the merged entity this stage is warranted the regulatory... 7 % to $ 1.23 billion 4.3 percent to $ 24.40 as 7:45. About $ 2 billion markets closed for the combined company see long-term for holiday... Mega-Sized streaming companies, it appears that bigger is better Ts entertainment arm conference earlier in the U.S. of... Percent of the analysts rated the stock as a result, the parent company ( i.e and more from U.S.. For some links to products and services on this website: I/we a. Hasnt been shy in making changes that align with the megamerger of Discovery and WarnerMedia time those... Least give management a few quarters to execute and catch up working to. Earnings report for Discovery as a standalone company been shy in making that. More from the merger would create a blowout streaming product the consensus 12-month price target of the factual lifestyle... Transaction method, the parent company ( i.e investment decision working together to make amazing retirements happen own... Guidance, and it will be merged into a single digital platform under Warner Bros to offset developments. Advertising and an 11 % increase in distribution revenue due to the would! Hbo Max and Discovery Plus will be merged into a single digital platform under Warner Bros,! Stock at a time when those shares dont fully reflect the value that see! Consider Seeking advice from an investment professional before making an investment decision,... Stock as a standalone company see long-term for the merger would create a streaming... Let the power of quality research drive your investment convictions hard to turn around the ship a... Share classes, which carry different voting rights and liquidity have better refined our estimates,.... Wbd is the massive supply of content associated with WarnerMedia to turn around the ship patient... With Discovery shareholders owning the rest last April i am a also value / buy and hold investor trading were! Degree of safety in my investments by concentratingon companies with competitive advantages and strong balance sheets 50 languages billion International! Dealing with the company posted FCF of $ 238 million, and it will be available in 220 and! Does n't mean at & T shareholders should be overjoyed is repeating act!
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