DIS
EU conditionally clears Paramount bid for Warner Bros.
Article Summary
HOLD- Paramount Skydance (NASDAQ: PLD) received conditional EU approval for its $110 billion takeover of Warner Bros.
- Discovery (NYSE: WBD) following concerns about the deal's impact on film distribution in Europe.
- The European Commission conditionally cleared the deal, requiring Paramount to terminate its stake in United International Pictures in the European Economic Area and suspend co-distribution agreements with Universal for 10 years.
- The EU said the commitments fully address competition concerns identified by the Commission by ensuring that the merged entity will not be distributed jointly with Universal or Disney, with independent trustee monitoring implementation.
- The deal still faces hurdles across the Atlantic after a federal judge in California temporarily halted the merger this week, with a preliminary injunction hearing set for August 3.
- The combined company would control CNN, Warner Bros., HBO, and HBO Max, with Netflix abandoning its bid in February after Paramount won a tense bidding war.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.0% | 25% | 20.0 ptsMinimal (4.0%) - Very weak |
| EPS Growth Next 5Y ? | 11.9% | 25% | 35.0 ptsBelow Screener (11.9%) - Modest outlook |
| Target Price Upside ? | 33.6% | 20% | 85.0 ptsLarge Upside (33.6%) - Target: $128.07 vs Current: $95.87 |
| Gross Margin % ? | 31.6% | 15% | 40.0 ptsModerate (31.6%) - Adequate margins |
| Drawdown from 52-Wk High ? | -22.3% | 15% | 40.0 ptsMild Pullback (-22.3%) - 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 DIS
- The Walt Disney Company operates as an entertainment company in Americas, Europe, and the Asia Pacific.
- It operates in three segments: Entertainment, Sports, and Experiences.
- The company produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
- It also provides direct-to-consumer streaming services through Disney+, Disney+ Hotstar, and Hulu; sports-related video streaming content through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to television and video-on-demand services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services.
- In addition, the company operates theme parks and resorts, such as Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii.
- Further, it licenses its intellectual property (IP) to a third party that owns and operates Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines.
- The company was founded in 1923 and is based in Burbank, California.