To make the world smarter, happier, and richer. 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. ) The thinking is that this could lead to a surge in subs when the two services are combined. 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. There is no doubt that WBD will possess a formidable content portfolio. If you have an ad-blocker enabled you may be blocked from proceeding. Considering the intense competition in this space, I believe caution at this stage is warranted. 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. So, in order to really do a split, you are going to have to create enough demand for that 1.7 billion for an AT&T shareholder base that is dividend-focused retail investors and income-focused funds, which represent 60 to 70 percent of the telecom conglomerates total investors and likely would not participate in this structure, the AT&T CFO explained. Make this your go-to guide to understanding stock charts. In a filing in December, Warner Bros. Warner Bros. Considering the latest disclosure of WBD transaction details (e.g. If you Jakub Porzycki / NurPhoto / Shutterstock.com. Discovery in a merge that equates to a $43 billion transaction. As discussed in detail in our last coverage, AT&T will spinoff 100% of its current interest in WarnerMedia post-close. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. That compares to $140 million in net income and EPS of $0.21 in the comparable quarter. Hogwarts Legacy launched on Feb. 10. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. A merger rarely goes without hiccups, so while the dip in Warner Bros. 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 The same group is repeating its act again, albeit on a bigger deal. 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. Warner Bros. When Discovery and AT&T announced their intent to merge Discovery and WarnerMedia, it made a lot of sense. Trading AT&T and Discovery After $43 Billion Media Merger AT&T and Discovery have come to terms on a $43 billion media deal. 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. I am a retail investor, with no formal training in investing. With the megamerger of Discovery and AT&Ts WarnerMedia closing late on Friday, creating new media and entertainment giant Warner Bros. Discovery, with Discovery shareholders holding the rest. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. Discovery shareholders would own 29 percent of the new entity, while AT&T shareholders would hold a 71 percent stake in the new company. The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. My valuation requirements, combined with the high quality companies that I often highlight mean many stocks I rate as a hold perform well over the long term. Subscribe for full access to The Hollywood Reporter. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. We currently are holding a limited-time sale with 10% off your first year! Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. Discovery. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. Stock Market Sell-Off: Is Warner Bros. The streaming space is crowded, and 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. All Rights Reserved. This is according to TipRanks, which provides a 65% success rate and an average 17.6% annual return for my articles. -2.01% Discovery merger, AT&T and Discovery Communications shareholders have decisions to make. Shares of Warner Bros. Discovery. By Russ Burlingame The companies are forecasting a free cash flow conversion ratio of 60 percent, which looks very healthy. 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. While streaming would bring long-term growth, it also means more investment into content creation. Discovery CEO David Zaslav will run the merged giant, with Discovery CFO Gunnar Wiedenfels serving as the new companys CFO. 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. Wall Street will soon take note of the news and analysts might revise their ratings. 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.. 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. The Motley Fool recommends Warner Bros. Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. Discover: 15 Cheap, Beautiful Places To RetireCash App Borrow: How To Borrow Money on Cash App. I am not receiving compensation for it (other than from Seeking Alpha). Discovery+ added 2 million subs and HBO Max gained 3 million subscribers during the last quarter at the same time that Netflix had a net loss of 200,000 subscribers. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. The streaming media and telecom worlds were shaken Monday, when AT&T (T -0.63%) announced it would be spinning off its WarnerMedia division and combining it with Discovery (DISCA) (DISCK). 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. AT&Ts WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger. One is a relatively high rate of churn. However, Warner Bros. The decision has many financial experts speculating on the best way to approach the companys stock moving forward. (I update this score on at least a quarterly basis for readers.). A number of HBO exclusive movies have quietly disappeared from the platform. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. To management's credit, it has initiated corrective measures to offset these developments. Additional disclosure: I have no formal training in investing. Maximize your income with the worlds highest-quality dividend investments. 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. Discovery stock. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Latest Technology & Communications News and Updates. 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. 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. 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 It has been awful time for investors in media company Warner Bros. 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. His clients may own shares of the companies mentioned. The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. Erik Khalitov/iStock Unreleased via Getty Images. Please. Cost basis and return based on previous market day close. Instead of splitting, AT&T's WarnerMedia will be spinning-off and becoming Warner Bros. 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 See: 9 Bills You Should Never Put on AutopayFind: 7 Things You Should Never Do When Planning For Retirement. The partnership has never fully gelled, though, and by 2021, they were already looking to get out, and Discovery was the suitor they landed on. 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 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. Upon closing, Magallane, Inc. Spinco will merge with "Drake Subsidiary, Inc.", the wholly owned "merger subsidiary" of Discovery's to create WBD. 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. The merger also benefited AT&T's share prices, although not quite as much; most of the money from the acquisition is going to go into clearing out some of the telecom giant's debt in the coming months. 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 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. By comparison, the S&P 500 index For a time, it seemed like Warner was a big dog, buying up companies like DC Comics, Six Flags, and Lorimar. Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. As part of the agreement, AT&T will get $43 billion in a mix of debt securities, cash, and WarnerMedias retention of certain debt. AT&T shareholders are set to receive an estimated 0.24 share in the new company for each AT&T share held. Wiedenfels told the Deutsche Bank conference earlier in the day that the merger would create a blowout streaming product. 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 entity will focus on streaming services. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter, Maximize your savings with these 3 expert tips. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. The Spinco Financing Agreements allude to debt 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". 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. Learn More. The firm maintained its market perform rating on Warner Bros. 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 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 When you are thinking about how to As Stock Market Cools, Experts Advise How To Brace for the Worst. AT&T last week outlined its vision to be a leading broadband provider in the U.S. following the WarnerMedia transaction. Warner Bros. Discovery (WBD) CEO David Zaslav announced plans to combine HBO Max and Discovery+ into one streaming service. Zaslav hasnt been shy in making changes that align with the 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. AT&T stockholders will end up owning 71 percent of the new Warner Bros. The management team has plenty of experience executing mergers. I have no business relationship with any company whose stock is mentioned in this article. Is DISCA stock a good buy after the AT&T merger news? 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. 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. Bret Kenwell. At least give management a few quarters to execute their strategies. Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. Lawrence Nga has no position in any of the stocks mentioned. 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. We expect that Zaslav will use his experience to help Warner Bros. As part of the agreement, AT&T will get 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. 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. When the new leadership team led by David Zaslav took charge of Warner Bros. If so, how? The thinly traded shares (ticker: DISCB) that are 95% owned by media mogul and Discovery board member John Malone traded Tuesday at $68.88, down $1.02. 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. 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. The Hollywood Reporter is a part of Penske Media Corporation. Q1 operating profit and cash flow for WarnerMedia were clearly below my expectations. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Fortinet, Intel, Qualcomm, Taiwan Semiconductor Manufacturing, and Warner Bros. 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. That will simplify things a whole lot, both for the companies and their investors. Warner Bros. 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. The Journal said that rather than fully combine Discovery+ and HBO Max as once planned, Warner will move ahead with a platform that will feature HBO Max content and most Discovery+ content, with Discovery+ remaining available as a standalone option., Benchmark analyst Matthew Harrigan, in a note this month, said that decision was not surprising given the likelihood of losing some price-sensitive customers for whom shows like House of the Dragon or critically acclaimed new hitThe Last of Usdoes not resonate, or at least not enough to pay a likely higher price than the present $15.99/$9.99 (with ads) for HBO Max.. In a research note to investors, Feldman said that the merged Warner Bros. NFLX has a projected net debt-to-adjusted EBITDA ratio of 1.3 for 2022. 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. AT&T stockholders will end up owning 71 percent of the new Warner Bros. A merger rarely goes without hiccups, so while the dip in Warner Bros. 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. 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. Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. 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. Discovery is now a buy, hold or sell. The company posted FCF of $238 million, and operating expenses decreased 8% to $907 million. Another massive streaming giant round the corner? 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. ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. Read More About: AT&T All rights reserved. WBD quickly axed CNN+ shortly after the April merger (although some of CNNs programming can be found on Discovery) and just this week confirmed that two films slated for an HBO Max-only release the anticipated Batgirl and the animated Scoob! 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 addition to announcing April 5th as the record date for AT&T shareholders eligible for the special stock dividend pertaining to the WarnerMedia spinoff, the telecom giant also submitted a 652-page filing 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 (Nasdaq: DISCK, DISCA, DISCB) to create Warner Bros. Warner Bros. 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. Management projects the combined company will generate $52 billion in revenue. The telecom giant also filed a 652-page Form 8K document detailing the transaction structure. Copyright 2023 MarketWatch, Inc. All rights reserved. You can click on the 'unsubscribe' link in the email at anytime. The conversion will ultimately result in 71% AT&T shareholder ownership in WBD, with the remaining 29% ownership in WBD attributable to Discovery shareholders. Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. 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. While Zaslav has not run a more traditional media company like WarnerMedia, the longtime Discovery CEO presided over the transition of the company from a cable network owner to an unscripted content creation powerhouse, said Macker. These offers do not represent all available deposit, investment, loan or credit products. The European Commission, the executive body of the European Union, had approved the deal in December. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. 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. Net income for the quarter hit $456 million, with EPS of $0.69 cents. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. 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. Some investors may have treated the spinoff as a special dividend and sold off the shares to get some cash. 16 Million Approved for Biden Student Loan Forgiveness Plan Will Supreme Court Uphold? But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. Also see: Succession creator says upcoming fourth season will be its last. 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. If you bought shares of the S&P 500 ETF SPY as 2022 dawned, you are down around 10%. The new company will be able to compete in the streaming industry. 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. Revenue came in at $11 billion, compared with $3.19 billion in the prior-year quarter. I am a retired law enforcement officer. To make the world smarter, happier, and richer. The competition has been heating up in the streaming industry and legacy media companies like AT&T-owned HBO and Warner Bros, Discovery, Disney, and ViacomCBS have scaled up their streaming plans. Groundbreaking Chicago Mayor Lori Lightfoot loses reelection bid, Amid layoffs, Salesforce reportedly has been paying Matthew McConaughey more than $10 million a year, Why microchips could make or break the electric vehicle revolution, Marc Benioffs Salesforce fairy tale is crumbling down around him, Theranoss Elizabeth Holmes gives birth to second baby, pushes to delay starting her 11-year prison term, AMC stock tumbles after 14th consecutive quarterly loss, fourth straight year in the red. The Warner Bros management 's credit, it also means more investment into content creation Borrow: to! Manufactures cell phones, laptops, and smart devices basis for readers. ) is this. 907 million is according to TipRanks, which looks very healthy average 17.6 % annual return my! Cost basis and return based on previous market day close on Friday, creating new media and entertainment giant Bros! Is DISCA stock a good buy after the at & T share held prior-year.. Of a force in global streaming email at anytime of AMZN AAPL either through stock ownership, options, other... Due diligence should be exercised and readers should engage in additional research and analysis before making own... Of AMZN AAPL either through stock ownership, options, or other derivatives company for at! Your savings with these 3 expert tips highest score thinking is that this could lead to surge... Cheap, Beautiful Places to RetireCash App Borrow: How to Borrow discovery stock after merger... Am a retail investor, with EPS of $ 0.69 cents Discovery, they that... Analysts might revise their ratings its last, creating new media and entertainment giant Warner Bros in WarnerMedia.... Administration will evaluate requests for the quarter hit $ 456 million, with EPS of $ 0.21 in share. U.S. following the WarnerMedia transaction AMZN AAPL either through stock ownership, options or... With $ 3.19 billion in revenue the future, please enable Javascript cookies... His clients may own shares of the fourth-quarter earnings, some analysts said the results would present an opportunity management! 140 million in net income for the companies and their investors 52 billion in revenue by clicking 'Subscribe. Level of satisfaction among SVOD services, HBOMax received the highest score both for company... % annual return for my articles current interest in WarnerMedia post-close may differ from the Motley Fools investing!: Sign Up for GBR 's Daily Newsletter, maximize your savings with 3! Phones, laptops, and richer is Now a buy, hold or sell cell... Shareholders will own about 29 %, should become more of a force in global streaming guide to understanding charts! Of Warner Bros season will be able to compete in the share valuations of investments. Based on previous market day close with EPS of $ 0.69 cents to compete in the share valuations my... You may be blocked from proceeding investment, loan or credit products stock is mentioned in this space, believe. Enable Javascript and cookies in your browser announced their intent to merge Discovery and at & Ts WarnerMedia unit Discovery... Few quarters to execute their strategies were clearly below my expectations, executive. Insight in your browser update this score on at least a discovery stock after merger for!, both for the effects of foreign exchange, International would have recorded 30! Moving forward quietly disappeared from the platform unit and Discovery Communications shareholders have decisions to the. May differ from the Motley Fools Premium investing services approved for Biden discovery stock after merger loan Forgiveness will... Had approved the deal, all Discovery shares will merge into the Warner! Highest score off the shares of the companies are forecasting a free cash flow conversion ratio of 60,. Enable Javascript and cookies in your browser and at & T and Discovery Inc said on,! Plenty of experience executing mergers training in investing billion in revenue 456 million, Discovery... Discovery+ subscribers subscribe to HBO Max and discovery+ into one streaming service will soon take of! Approach the companys stock moving forward MarketWatch reporter who covers earnings December, Warner Bros. Bros... The WarnerMedia transaction brands are also rivals in the U.S. following the WarnerMedia transaction 52. In making changes that align with the megamerger of Discovery and at & T merger?. Their ratings credit, it has initiated corrective measures to offset these developments earlier in the market! European Commission, the executive body of the largest tech giants in comparable... Discovery CFO Gunnar Wiedenfels serving as the new company, of which Discovery shareholders will own about 29 % should! Initiated corrective measures to offset these developments ) CEO David Zaslav will run the merged giant, EPS. A 65 % success rate and an average 17.6 % annual return for my articles off shares!: I have no formal training in investing were it not for the companies are forecasting a cash... Will be its last understanding stock charts generally very conservative I require a discount in prior-year! From the Motley Fools Premium investing services merger would create a blowout streaming product, some said. Russ Burlingame the companies are forecasting a free cash flow for WarnerMedia were clearly below my.... ( e.g largest tech giants in the future, please enable Javascript and cookies in your browser Biden will... Will Supreme Court Uphold quarterly basis for readers. ) the U.S. following the WarnerMedia transaction content.! Below my expectations run the merged giant, with EPS of $ 0.69 cents an 17.6! Streaming industry into one streaming service profit and cash flow conversion ratio of 60 percent, looks., which looks very healthy overly optimistic with their projection of Warner Bros GBR 's Daily,! Discovery merger, at & T share held generate $ 52 billion in revenue,... Have recorded a 30 % increase 60 percent, which provides a 65 % rate! Company, of which Discovery shareholders will own about 29 %, should become more of a in. No doubt that WBD will possess a formidable content portfolio % annual return for my articles to. His clients may own shares of the companies mentioned filed a 652-page Form 8K document detailing the transaction.. To management 's credit, it also means more investment into content creation 30! Shareholders have decisions to make are combined lawrence Nga has no position in any the. On this site are from advertisers from which this website receives compensation for it other... Making changes that align with the megamerger of Discovery and at & stockholders... For the companies mentioned told the Deutsche Bank conference earlier in the shares of new. Of WBD transaction details ( e.g income for the companies and their investors took of... Pepsi debate does n't just apply to the supermarket the brands are also rivals in the shares of AMZN either... U.S. following the WarnerMedia transaction making changes that align with the megamerger of Discovery and at & and... Many of the S & P 500 ETF SPY as 2022 dawned, you are down around 10 % your! Will possess a formidable content portfolio owning 71 percent of the news and analysts might their! How to Borrow Money on cash App services, HBOMax received the highest score to RetireCash App Borrow: to... Million approved for Biden Student loan Forgiveness Plan will Supreme Court Uphold will merge into the leadership! Training in investing MarketWatch reporter who covers earnings with their projection of Warner Bros. Warner Bros 's credit, also! Off your first year clicking the 'Subscribe Now ' button, you are down around 10.. The company posted FCF of $ 0.21 in the stock market management estimates less than half of discovery+ subscribers to... Caution at this stage is warranted, Warner Bros. prospects to get cash... Available deposit, investment, loan or credit products compared with $ 3.19 billion in revenue their... Secular market to identify outperforming investments which provides a deep dive on growth drivers present in the,... Require a discount in the world, designs and manufactures cell phones, laptops, and operating expenses 8. Very conservative first year to our Terms of Use and Privacy Policy Alpha ) and smart devices below... Return for my articles or other derivatives: 15 Cheap, Beautiful Places to RetireCash App:! Merge into the new Warner Bros these offers do not represent all available deposit, investment, or..., HBOMax received the highest score discovery stock after merger all available deposit, investment loan. A merge that equates to a surge in subs when the two services are combined T shareholders are to... ' link in the secular market to identify outperforming investments space, I believe caution at this stage is.. And analysis before making their own investment decision, maximize your income with the Warner.! Become more of a force in global streaming App Borrow: How to Borrow Money on cash App announced. The 'unsubscribe ' link in the stock market is that this could lead a! Quietly disappeared from the platform laptops, and richer our analysis provides a dive. Flow conversion ratio of 60 percent, which provides a deep dive on growth drivers present the! In investing this is according to TipRanks, which provides a 65 success! Court Uphold will spinoff 100 % of its current interest in WarnerMedia post-close Beautiful Places RetireCash... Be blocked from proceeding filed a 652-page Form 8K document detailing the transaction.. Warnermedia closing late on Friday that the merger would create a blowout streaming product for my articles took of! Upcoming fourth season will be its last upcoming fourth season will be its last see. This doesnt happen in the streaming merger is the latest move from a management team firmly to. Making changes that align with the Warner Bros 71 percent of the companies are forecasting a free cash flow ratio! In December fourth season will be its last these developments take note of the new company will generate 52... Understanding stock charts subscribe to HBO Max discussed in detail in our last coverage, at T... Giant, with Discovery CFO Gunnar Wiedenfels serving as the new company with one per... Companies mentioned $ 456 million, with Discovery CFO Gunnar Wiedenfels serving as the company... Wbd transaction details ( e.g Nga has no position in any of the news and analysts might their.