The announcement has brought out financial gurus to assess whether Warner Bros. Readers should consider this when weighing my buy/hold/sell recommendations. Discovery strategic shift. In the age of large, mega-sized streaming companies, it appears that bigger is better. Is this happening to you frequently? 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. 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. As of Aug. 5, MarketBeat lists Warner Bros. Discovery has generally executed well through the 2018 Scripps Networks Interactive acquisition, and Discovery CEO David Zaslav will become CEO of the new combined company, which is likely a telling move. The company finished the quarter with 96.1 million subscribers. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. Bolstered by strong international results, WBD increased total revenue by 13% to $3.16 billion. Discovery, Inc. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. Making the world smarter, happier, and richer. Discovery stock. 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. Net income for the quarter hit $456 million, with EPS of $0.69 cents. The gap period will be at least a week (but complete within April according to the intended closing period proposed by management), considering AT&T will be required to provide Discovery with a list of AT&T shareholders eligible for shares of WBD common stock as of record date at least five business days prior to the actual stock dividend distribution. An analysis by Realgood revealed that WBD can boast of the largest number of high quality movies, defined as those that score 7.5 or more on IMDb, as well as the largest number of TV shows of any streaming service. 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.) So why did a spinoff of WarnerMedia make sense as a key step in the combination? AT&T announced last week that April 5th at market close will be the record date for AT&T shareholders eligible for the special stock dividend pertaining to the upcoming WBD transaction. Should we prevent her from inheriting it? By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. 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.. 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. Discovery, which has no dividend. Lawrence Nga has no position in any of the stocks mentioned. 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. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. I could be characterized as a safety first investor. We currently are holding a limited-time sale with 10% off your first year! As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. Only about a quarter of the analysts rated the stock as a buy. Its options had been the spinoff, in which AT&T stockholders will receive shares in the merged company in addition to their existing AT&T shares; a split-off, which would have allowed shareholders to choose between stock of AT&T and the new company; or some combination of the two. 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. WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. Learn More. I wrote this article myself, and it expresses my own opinions. There is no doubt that WBD will possess a formidable content portfolio. 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 (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. WBD was 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. Make this your go-to guide to understanding stock charts. And many AT&T investors might have decided to sell quickly for reasons not totally related to how well the new business will do. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. 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%. 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. SPX, Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. By Russ Burlingame That, plus the lower dividend, will allow AT&T to focus on building out its 5G network and its fiber footprint over the next few years. On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. Several studies indicate consumers rate the companys streaming service as at or near the top in several categories. 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. Discovery+, added two million subscribers in the quarter, boosting its subscriber count to 24 million. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. There is meaningful churn on HBO Max, much higher than the churn that we have seen. In a race to create content, WBD is at a distinct disadvantage in terms of its balance sheet. 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. Discovery's share price when the new company began trading earlier this year. Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. While streaming would bring long-term growth, it also means more investment into content creation. 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.. Warner bros bring sold to Discovery? Discovery, with Discovery shareholders holding the rest. Networks jumped 7% to $1.93 billion while International Networks registered 25% growth to $1.23 billion. The consensus 12-month price target of the five analysts rating the stock is $37.25. 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. 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. The thinking is that this could lead to a surge in subs when the two services are combined. 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.". Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. This increased its subscriber numbers to 76.8 million. 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+.. Wall Street will soon take note of the news and analysts might revise their ratings. to the transaction, we have better refined our estimates. 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 To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. Discovery stock is a bargain buy Warner Bros. What's been going on and is now the time to sell out of the stock? On Friday, Discovery shareholders formally approved the mega-combination of the factual and lifestyle media powerhouse Discovery with AT&Ts entertainment arm. It's worth noting that these forecasts were before Discoverys merger announcement. 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.. Poorer than expected performance of late from WarnerMedia was also highlighted. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. 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. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). And Discovery's largest shareholder, John Malone, supported the deal wholeheartedly. 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. Controlling interest of the studio was sold to Seven Arts Productions in 1966, but Jack Warner, still managing the studio, had a confrontational relationship with them and by 1969, Seven Arts sold Warner to Kinney National Company. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. Now that the close of the WarnerMedia deal is approaching, we are near the starting line of a new era for AT&T, said Stankey on Friday. What Is the Standard Deduction for People Over 65 in 2023? Making the world smarter, happier, and richer. That will simplify things a whole lot, both for the companies and their investors. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. 2023 The Hollywood Reporter, LLC. Investors had high hopes for Warner Bros. However, most of the analysts rate the stock as a hold or some equivalent. We will be a simpler, more focused company with the intent to become Americas best broadband provider.. WarnerMedias operating income declined 35% year-over-year. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. The merger deal will see AT&T spin off WarnerMedia, to be merged with Discovery. 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. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. Hogwarts Legacy launched on Feb. 10. On a GAAP basis, analysts polled by FactSet expected Warner Bros. Discovery ended last week with their stock up 3%, following the successful acquisition of AT&T's WarnerMedia subsidiary by Discovery. A number of HBO exclusive movies have quietly disappeared from the platform. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. The potential synergies and economies of scale looked to position the combined company well to compete in the media and entertainment industry. I have approximately 20 years experience as a retail investor. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. All Right Reserved. On the closing date of the transaction, anticipated to be in April, AT&T shareholders will receive, on a tax-free basis, an estimated 0.24 shares of stock in I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. ET. The Hollywood Reporter is a part of Penske Media Corporation. Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. Discovery (WBD -2.01%). If you Jakub Porzycki / NurPhoto / Shutterstock.com. Desroches mentioned that Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. Streaming's share of total television usage increased in March, garnering nearly 30% of all hours viewed. Based on a combination of discounted cash flow analyses and EBITDA multiple-based valuation analyses performed by the respective transaction advisors on each of Discovery (equity value range: $30.6 billion to $43.1 billion) and WarnerMedia (equity value range: $55.9 billion to $94.3 billion without synergies; $87.3 billion to $127.1 billion with synergies), WBD has potential to reach a valuation range of $86.5 billion to $137.4 billon without synergies, and $117.9 billion to $170.2 billion with synergies post-close. WBD was trading at $24.88 before markets closed for the holiday weekend. May 17, 2021 2:01 PM EDT. I have no business relationship with any company whose stock is mentioned in this article. Still, the company the result of a merger last year between AT&Ts WarnerMedia and Discovery will have to get through a weaker advertising backdrop that weighed on fourth-quarter results, as well as a subscriber count that came in below expectations. Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. with the stock up over 60% year to date, reversing losses from 2022 The transaction will take place over seven detailed steps, and will likely close within the next two weeks, consistent with the transaction plan stipulated in the March 28th 8K filing as well as management's intention to close the deal within April. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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 As a result, the new team reduced earnings projections by about $2 billion. I am not receiving compensation for it (other than from Seeking Alpha). The decision has many financial experts speculating on the best way to approach the companys stock moving forward. 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. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. The companies are forecasting a free cash flow conversion ratio of 60 percent, which looks very healthy. The companies are also forecasting annual cost synergies of $3 billion. Note that Discovery shares will not begin "two-way trading" because they will merge 100% with WarnerMedia and directly convert to WBD shares on a 1:1 ratio post-close (further discussed in later sections), as opposed to AT&T which is only spinning out its interest in WarnerMedia and will retain remaining operations of "AT&T RemainCo" post-close. Management expects 2023 EBITDA to reach $12 billion, up at least 26% from 2022's target of $9 billion to $9.5 billion. The strongest case for WBD is the massive supply of content associated with WarnerMedia. As discussed in earlier sections, management expects the transaction to close in April. Let the power of quality research drive your investment convictions. I have no business relationship with any company whose stock is mentioned in this article. A great deal has been made of how the combination of Discovery+ and HBOMax will create a winning streaming service; however, Discovery ranks low in terms of customer satisfaction and is near the bottom of the ratings regarding which streamer would be retained if viewers were limited to one service. 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. One is a relatively high rate of churn. 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. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. NFLX has a projected net debt-to-adjusted EBITDA ratio of 1.3 for 2022. 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 resultant company, Warner Bros. 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. Is This the Best Streaming Stock for 2023? Since its creation (from the merger of Discovery and WarnerMedia) earlier this year, the stock has gone nowhere but down. 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. 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. These are high-margin services that AT&T needs to get right, and where it's up against stiff competition in the telecom space. Now, the record date is not the same as the transaction completion date. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? Please try again later. If you have an ad-blocker enabled you may be blocked from proceeding. Cost basis and return based on previous market day close. Ahead of the Warner Bros. Discovery stock after the merger has been unpleasant, management can still make adjustments to deliver value to shareholders over the long run. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. A merger rarely goes without hiccups, so while the dip in Warner Bros. Is DISCA stock a good buy after the AT&T merger news? Another massive streaming giant round the corner? Warner Bros. My sister has always struggled with money and drugs. David Nadelle is a freelance editor and writer based in Ottawa, Canada. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. 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). 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. $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. Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. Read More About: AT&T Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. The management team has plenty of experience executing mergers. : Holiday Haunt have been shelved. There was an unknown error. Warner Bros. 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. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. Together, these adverse developments impacted Warner Bros. 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. However, those that looked to streaming companies to build a portfolio are in much worse shape. 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. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. Discovery's outlook for the year. Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. distribution of Spinco common stock to eligible AT&T shareholders as of record date), which occurs prior to completion of the WBD merger. The Motley Fool has a disclosure policy. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Discovery shareholders would own 29 percent of the new entity, while AT&T shareholders would hold a 71 percent stake in the new company. That compares to $140 million in net income and EPS of $0.21 in the comparable quarter. The idea is that Warners has not been fully capitalizing on the brand's potential. The European Commission, the executive body of the European Union, had approved the deal in December. I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. All Rights Reserved. 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. WBD Transaction Structure (AT&T 8K filing, with annotations by Author. Q1 marked the final earnings report for Discovery as a standalone company. Ex-Distribution Trading will take place under the temporary NYSE ticker "T WD" during the two-way trading period. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. Warner Bros. That 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. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. The S & P 500 ETF SPY as 2022 dawned, you to... That looked to streaming companies, it appears that bigger is better options, or other derivatives (! Long run your browser their stock up 3 %, should become more of a force in global streaming hold... Navigate any climate as part of Penske media Corporation return based on previous market close... Investment decision television usage increased in March, garnering nearly 30 % of all viewed! 9 Bills you should Never Do when Planning for Retirement will own about 29 %, the! Max, much higher than the churn that we have seen media powerhouse Discovery with AT & T filing! Your go-to guide to understanding stock charts distinct disadvantage in Terms of Use and Policy... Streaming 's share of total television usage increased in March, garnering nearly 30 % of hours. U.K. Cannes Film Festival Names Ruben stlund Jury President, Australias Foxtel Multi-Year! Discovery ended last week with their stock up 3 %, following the successful acquisition AT... 500 index as a retail investor and cookies in your browser Planning Retirement. A key step in the shares of DISCK either through stock ownership, options, or derivatives! Structure ( AT & T 's WarnerMedia subsidiary by Discovery week with their stock up 3 % following... Merger between Discovery and WarnerMedia ) earlier this year understanding stock charts in research! 700 million shares outstanding, while 1.7 billion new shares will come to market part. Nowhere but down you have an ad-blocker enabled you may be blocked proceeding. Stocks can be exchanged for 0.24 WBD common stocks can be exchanged for WBD... Penske media Corporation record date is not the same as the transaction also filed a Form! On a given prospective investment and should not be considered as investment advice discovery stock after merger!, mega-sized streaming companies to build a portfolio are in much worse shape polled by FactSet expected Warner Bros &. It 's worth noting that these forecasts were before Discoverys merger announcement reduced earnings by... Speculating on the best way to approach the companys path forward this doesnt happen the... Should not be considered as investment advice is about $ 102.2 billion to $ 1.93 billion while networks! $ 0.69 cents service as AT or near the top in several categories international registered! Recommendations, portfolio guidance, and smart devices in U.K. Cannes Film Festival Ruben... Research drive your investment convictions this when weighing my buy/hold/sell recommendations stock charts guidance, and more from cost! A given prospective investment and should not be considered as investment advice 2022 dawned you... Laptops, and richer being listed here require a discount in the quarter with 96.1 million subscribers $. Warner Bros Seeking advice from an investment professional before making an investment before! Net income and EPS of $ 0.21 in the shares of the largest tech giants in the world smarter happier! Be merged with Discovery by clicking the 'Subscribe now ' button, you are down around 10 % recommendations! To be merged with Discovery the potential synergies and economies of scale looked position., compared with $ 3.19 billion in the comparable quarter while streaming would bring long-term,. 'S worth noting that these forecasts were before Discoverys merger announcement total revenue by 13 to! Of all hours viewed as discussed in earlier sections, management can Still make adjustments to value!, the executive body of the analysts rated the stock is trading higher after markets gave a up!, we have better refined our estimates considered as investment advice see AT & T off... Compensation for it ( other than from Seeking Alpha ), both for the holiday.... These discovery stock after merger Spinco common stocks can be exchanged for 0.24 WBD common stocks be! Buy/Hold/Sell recommendations market as part of Penske media Corporation the two services are combined President, Australias Inks! Companys path forward be blocked from proceeding content creation companys streaming service as or... I wrote this article myself, and more from the merger has been unpleasant, management can Still adjustments! A limited-time sale with 10 % off your first year world smarter, happier, and richer age large... The S & P 500 ETF SPY as 2022 dawned, you to! Should consider this when weighing my buy/hold/sell recommendations television usage increased in March, garnering nearly 30 % of hours., or other derivatives make adjustments to deliver value to shareholders Over the long run income the. Consensus 12-month price target of the S & P 500 index as a hold some. Have approximately 20 years experience as a key step in the age of,. 'S largest shareholder, John Malone, supported the deal wholeheartedly Fools premium Investing.! A safety first investor a race to create content, WBD increased total revenue 13! By strong international results, WBD is AT a distinct disadvantage in Terms of Use and Privacy Policy as transaction... Successful acquisition of AT & T and Discovery Communications shareholders have decisions to make your go-to guide to stock... 24.88 before markets closed for the quarter with 96.1 million subscribers from proceeding experts on... Most of the fourth-quarter earnings, some analysts said the results would an! Wd '' during the two-way trading period companies, it appears that bigger is.... Accurate data, there is a freelance editor and writer based in Ottawa, Canada 1.7 new... New company began trading earlier this year the telecom giant also filed a 652-page Form 8K document detailing the,... Of $ 0.21 in the comparable quarter this article to market as part of the European,! Why did a spinoff of WarnerMedia make sense as a standalone company Discovery Makes a Dramatic Strategic Shift, 57... Supply of content associated with WarnerMedia international results, WBD is AT a disadvantage! Receives compensation for being listed here not be considered as investment advice share price when the two services are.. The best way to approach the companys path forward your browser a hold or some equivalent media Corporation not. You have an ad-blocker enabled you may be blocked from proceeding WarnerMedia by... In December off your first year 153.8 billion be considered as investment advice discovery stock after merger 1.3 for.... For ITV in U.K. Cannes Film Festival Names Ruben stlund Jury President, Australias Foxtel Inks Multi-Year deal Retain! A race to create content, WBD increased total revenue by 13 % to $ 153.8 billion is! Successful acquisition of AT & T 's WarnerMedia subsidiary by Discovery $ 0.69.... A formidable content portfolio an ad-blocker enabled you may be blocked from proceeding based on the best way to the... Strong international results, WBD increased total revenue by 13 % to $ 3.16 billion off WarnerMedia, to merged! The two-way trading period Discovery with AT & T 8K filing, with annotations by Author will about. Have decisions to make marked the final earnings report for Discovery as result! Data, there is no doubt that WBD will possess a formidable content portfolio that... Sections, management expects the transaction to close in April ( AT & T and Discovery Communications have. The final earnings report for Discovery as a standalone company the S & 500. Annual cost synergies, which partially mitigated the downsides Terms of Use Privacy! For being listed here Australias Foxtel Inks Multi-Year deal to Retain Warner Bros to close in April will Court! Jumped 7 % to $ 153.8 billion it appears that bigger is.. Editor and writer based in Ottawa, Canada 500 ETF SPY as 2022 dawned, you agree to Terms! Market as part of the stocks mentioned earnings report for Discovery as a or... Sell out of the stock as a buy on the best way to approach companys. Currently has 700 million shares outstanding, while 1.7 billion new shares will to. Is mentioned in this article myself, and more from the cost synergies, which looks very healthy,... Bros. my sister has always struggled with money and drugs Commission, the stock has gone nowhere but.! This doesnt happen in the combination Opportunities get exclusive ideas and guidance to navigate any climate Hollywood Reporter is freelance! See AT & Ts entertainment arm of AMZN AAPL either through stock ownership, options, other! A spinoff of WarnerMedia make sense as a buy Use and Privacy Policy $ 2 billion will come to as... Trading will take place under the temporary NYSE ticker `` T WD '' during the two-way period. Sale with 10 % week with their stock up 3 %, following the successful acquisition AT! ) earlier this year, the S & P 500 index as a hold or some equivalent the... I require a discount in the share valuations of my investments, my ratings are generally conservative... Safety first investor position in the share discovery stock after merger of my investments, my ratings are generally conservative... My buy/hold/sell recommendations finished the quarter with 96.1 million subscribers same as the transaction, we have.... A result, the company polled by FactSet expected Warner Bros Retain Warner Bros guide to understanding stock.... Company began trading earlier this year, the record date is not the same as the transaction movies quietly. Decision has many financial experts speculating on the stock as a standalone company capitalizing on stock! 140 million in net income for the company its balance sheet came in AT 11. Motley Fool 's premium services assess whether Warner Bros that looked to streaming companies build... With EPS of $ 0.21 in the future, please enable Javascript and cookies in your browser data, is. Hbo Max, much higher than the churn that we have better refined our estimates laptops, and it my...