WBD
What to know about the landmark Warner Bros. Discovery sale
Article Summary
HOLD- Discovery (NYSE: WBD) faced mounting debt, declining cable viewership, and fierce competition from streaming platforms, prompting Warner Bros.
- Discovery to consider selling its entertainment assets to a major rival.
- Netflix initially offered $82.7 billion for studios and streaming, but Paramount offered $111 billion for all of the company's assets, including studios, HBO, streaming, games, and networks like CNN and HGTV.
- The offer was approved by the DOJ in June, but a federal judge halted the deal after a lawsuit was filed by 12 state attorneys general, citing concerns about Paramount's heavy debt load and the increased risk associated with its proposal.
- Netflix then sweetened its offer to $27.75 per share, further securing investor confidence and allowing the sale to proceed.
- The deal is expected to disrupt Hollywood and media as we know it, with analysts predicting a major shake-up in media consolidation.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -2.8% | 25% | 0.0 ptsDeclining (-2.8%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 16.2% | 20% | 60.0 ptsModerate Upside (16.2%) - Target: $29.98 vs Current: $25.81 |
| Gross Margin % ? | 30.8% | 15% | 40.0 ptsModerate (30.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -14.0% | 15% | 40.0 ptsMild Pullback (-14.0%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About WBD
- Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide.
- It operates through three segments: Streaming, Studios, and Global Linear Networks.
- The Streaming segment offers streaming services, such as HBO Max and discovery+, and premium pay-TV services, including HBO and certain premium sports streaming products for mobile and connected TV devices.
- The Studios segment is involved in the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services.
- This segment also distributes films and television programs to various third-party and internal television, streaming services, and physical and digital home entertainment markets; related consumer products and themed experience licensing; and publishes, develops, licenses, and distributes content for the interactive space in platforms, including console, handheld, mobile, and PC-based gaming for both internal and third-party game titles.
- The Global Linear Networks segment provides general and lifestyle entertainment networks, news networks; and hosts international media networks and global sports networks.
- In addition, the company offers a portfolio of content and products for television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products under the Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Warner Bros.
- Motion Picture Group, Warner Bros. Television Group, Warner Bros. Games, Adult Swim, Turner Classic Movies, and other brands.
- Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.