discovery stock after merger

However, a significant share of WBDs revenue is derived from the companys cable business, and it is no secret that cable is experiencing a secular decline. 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. 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. The management team has plenty of experience executing mergers. Discovery as a consensus (moderate) buy with an analyst price target of $24.79. Warner Bros. The new company will be able to compete in the streaming industry. Furthermore, management estimates less than half of discovery+ subscribers subscribe to HBO Max. I am a retail investor, with no formal training in investing. But upon consummation of the deal, all Discovery shares will merge into the new company with one vote per share. I am not receiving compensation for it (other than from Seeking Alpha). In a research note to investors, Feldman said that the merged Warner Bros. 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". 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Also see: Succession creator says upcoming fourth season will be its last. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. That will simplify things a whole lot, both for the companies and their investors. 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. We will be a simpler, more focused company with the intent to become Americas best broadband provider.. ), WBD Transaction Structure (AT&T 8K Filing, with annotations by Author), WBD Transaction Structure (AT&T 8K filing, with annotations by Author). WBD was trading at $24.88 before markets closed for the holiday weekend. 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 Read More About: AT&T The thinking is that this could lead to a surge in subs when the two services are combined. 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. Now, after the merger is complete, we should look at the financials of the merged entity. Discovery Makes a Dramatic Strategic Shift, Up 57% and Climbing, This Stock Is Still a Bargain Buy in 2023. Is this happening to you frequently? Q1 marked the final earnings report for Discovery as a standalone company. Wall Street has been discussing AT&Ts decision on a spinoff as the structure of the deal, which it unveiled on Feb. 1. AT&T) wishing to divest a subsidiary (i.e. Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. AT&T and Discovery sound optimistic about the new company's outlook. 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. Now consider that the portfolio of Discovery+ will be added to that of HBOMax, and you have the makings of a content king. Discovery, they discovered that the previous management had been overly optimistic with their projection of Warner Bros. prospects. We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. At the end of 2021, the pro forma debt for WBD was over $56 billion. 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. However, Discovery is an expert in international content, with a presence across 220 markets, and expertise adapting its unscripted content to many other languages. 2023 The Hollywood Reporter, LLC. It has been awful time for investors in media company Warner Bros. 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. And right or wrong, management has made a decision to invest a lot of the incoming funds into a number of investment initiatives. Net income for the quarter hit $456 million, with EPS of $0.69 cents. Asked about the risk of future dividend cuts, Desroches said that the dividend is not only safe, but its size gives the company financial flexibility. 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. 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. 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. And it will be available in 220 countries and 50 languages. I have no business relationship with any company whose stock is mentioned in this article. In early Monday trading, the shares of the On 7.14 billion current shares, that's about $1.18 per share, just a little more than half the $2.18 payout today. Telecom giant AT&T chose to spin off, rather than split off, WarnerMedia in a key step of the entertainment units merger with Discovery to avoid having to really discount the merged Warner Bros. Discoverys stock, AT&T CFO Pascal Desroches told investors Monday. The idea is that Warners has not been fully capitalizing on the brand's potential. People may receive compensation for some links to products and services on this website. distribution of Spinco common stock to eligible AT&T shareholders as of record date), which occurs prior to completion of the WBD merger. We currently are holding a limited-time sale with 10% off your first year! DISCA stock looks like a good buy at the current prices. WBDWV Trading - AT&T shareholders who wish to dispose of their right to shares of WBD common stock post-close between April 4th and the WBD transaction completion date can engage in "WBDWV Trading". Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings. ET. Essentially, AT&T will transfer 100% of its owned WarnerMedia assets into the Magallane, Inc. Spinco prior to the completion of the transaction. One is a relatively high rate of churn. The resultant company, Warner Bros. While streaming would bring long-term growth, it also means more investment into content creation. 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. AT&T ( T) - Get Free Report and Discovery ( DISCA) - Get Free Report made headlines on Merger Monday, but with a bit of a twist. Warner Bros. Under the terms of the deal, which is structured as an all-stock transaction, AT&T would receive $43 billion in cash and debt with its shareholders controlling 71% of At the time of the WarnerMedia and Discovery merger in April, Zaslav promised to find $3 billion in savings from the deal, per NBC. We will not overspend to drive subscriber growth. Please. Echoing our thoughts from the previous coverage, we believe the fast-approaching WBD spinoff will be a promising play for participating AT&T investors. A merger rarely goes without hiccups, so while the dip in Warner Bros. Following the merger early last month, WBD ranks as the number-three player in the U.S. video streaming business behind Netflix and Disney. Market Realist is a registered trademark. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. With the WarnerMedia spinoff fast approaching, AT&T (NYSE:T) has uploaded a series of press releases last week detailing how the transaction will take place. -0.30% 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). ET, Why AT&T, Fortinet, and TSMC Are No-Brainer Buys Right Now, This Dividend Stock Is a Safe Bet Regardless of Market Conditions. 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. 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 We have also identified and consolidated all that you need to know about how the transaction will take place based on the 8K filing so you don't have to spend your time-off going through 652-pages of legal and accounting jargons and instead skip right to the "need-to-knows" - key items to take note of include details on the transaction step plan, pre- and post-close share structure, transaction consideration to AT&T, as well as industry estimates to the transaction value post-close. Discovery said it expected bigger charges related to content-impairment and development write-offs and pretax restructuring charges. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. For a time, it seemed like Warner was a big dog, buying up companies like DC Comics, Six Flags, and Lorimar. When you buy stock, you're essentially buying a tiny piece of the company it represents. Ahead of the 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. - April 18, 2022 08:39 am EDT. Warner bros bring sold to Discovery? we also think that one of the big opportunities here is going to be churn reduction. Discovery is now a buy, hold or sell. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. 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. Revenue from U.S. Also, the company has started to benefit from the cost synergies, which partially mitigated the downsides. I wrote this article myself, and it expresses my own opinions. Discovery was word that DC could be restructured. The stock could be a long-term winner based on its the strong growth potential in the streaming industry. Is This the Best Streaming Stock for 2023? We feel really good about where we are.. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. Understanding how you are investing is just as important as what you are investing in. 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. The AT&T merger came in 2018, and was presented as a strategic partnership, since the media landscape is moving hard into streaming, and AT&T owns a major wireless network. The new entity will focus on streaming services. AT&T has applied an exchange ratio of 2.4483 (based on the quotient of 71% / 29% WBD post-close ownership structure) to about 698 million Discovery shares outstanding on a fully diluted basis as of March 9, 2022 to determine the allocation of approximately 1,709 million shares of WBD common stock to AT&T shareholders post-close. In 2000, internet service provider America Online bought Time-Warner, Inc. to form AOL Time Warner, but when the dot-com bubble burst, that partnership dissolved quickly. Learn More. Billy Duberstein owns shares of AT&T, Discovery (C shares), and Netflix. These offers do not represent all available deposit, investment, loan or credit products. Disclosure: I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. In our last coverage on the upcoming WBD transaction and its implications for AT&T post-close, we had provided a detailed estimate on WBD's upside potential attributable to AT&T shareholders post-close. So why did a spinoff of WarnerMedia make sense as a key step in the combination? Warner Bros. Discoverys revenue fell short of expectations in Q4 as the company lost more than $2 billion on linear, streaming, & studio. After last years messy mega-merger, executives at Warner Bros. Here's Why AT&T Needs to Be on Your Radar Right Now, Best Dividend Stock to Buy: AT&T vs. Ford vs. Intel, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, Billionaire Investor Bill Ackman Is Raking In $97 Million In Annual Dividend Income From These 2 Stocks, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 3 No-Brainer Stocks to Buy With $50 Right Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. In the process of merging AT&T at 71% and Without a set value assigned to its streaming service, but with a massive potential for growth, Goldmans Brett Feldman has confidence in WBD. 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. I could be characterized as a safety first investor. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Cost basis and return based on previous market day close. The Wall Street Journal this month reported that Warner Bros. The blended average of the combined WBD valuation range with and without synergies is about $102.2 billion to $153.8 billion. Another massive streaming giant round the corner? The Coke vs. Pepsi debate doesn't just apply to the supermarket the brands are also rivals in the stock market. Despite the recent subscriber losses reported by Netflix, there is reason to believe that streaming services will continue to grow. However, I admit I have reservations regarding the companys debt load and financial prowess. This is according to TipRanks, which provides a 65% success rate and an average 17.6% annual return for my articles. AT&T and Discovery on Monday announced that they will merge their media assets in a megadeal that creates a stronger rival to Walt Disney and Netflix amid global AT&T shares fell in pre-market trading and were down 4.3 percent to $24.40 as of 7:45 a.m. 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. The forward P/E for the company is 8.68x, and the 5-year PEG is 0.43x. Upon completion of the transaction, AT&T shareholders will, together, own 71% equity interest in WBD, with Discovery shareholders owning the remainder 29%. You can click on the 'unsubscribe' link in the email at anytime. 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. 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. Discovery currently has 700 million shares outstanding, while 1.7 billion new shares will come to market as part of the transaction. 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. Erik Khalitov/iStock Unreleased via Getty Images. Just a few years ago, the same team acquired and integrated Scripps Networks into Discovery. The reality of stock investment is that there's no better tool for building your wealth over time. Please disable your ad-blocker and refresh. Erik Khalitov/iStock Unreleased via Getty Images. His clients may own shares of the companies mentioned. 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%. Ahead of the fourth-quarter earnings, some analysts said the results would present an opportunity for management to reframe the companys path forward. Make this your go-to guide to understanding stock charts. 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". 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. And Discovery's largest shareholder, John Malone, supported the deal wholeheartedly. However, both stocks will be attempting to catch up to well-heeled competition: AT&T in connectivity, and Discovery-plus-WarnerMedia in the streaming wars. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Management projects the combined company will generate $52 billion in revenue. I am a retired law enforcement officer. That same study revealed that when questioned regarding their level of satisfaction among SVOD services, HBOMax received the highest score. WBD projects $20 billion in content spend in 2022. The spinoff and dividend cut is probably the right long-term move for AT&T, as it will offload some $43 billion in debt to the new WarnerMedia company. 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. After a financial scandal tarnished the Kinney brand, they became Warner Communications in 1972. What Is the Standard Deduction for People Over 65 in 2023? (I update this score on at least a quarterly basis for readers.). The distributed Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on the stock dividend exchange ratio previously discussed. Additional disclosure: I have no formal training in investing. Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Stock Market Holidays 2023: Is the Stock Market Open Today? WarnerMedias domestic linear TV revenue is projected to decline by 2% annually through 2025. The merger with Discovery has the above-stated benefits for AT&T, including significantly reduced debt. Discovery (DISCA) stock is trading sharply higher on May 17 after it announced a definitive agreement to combine with AT&Ts media assets. 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.. 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. With a loss of 6% in 2022, Paramount Global (PARA) stands out as the winner, so to speak, among this bunch. 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. The firm maintained its market perform rating on Warner Bros. 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. For example, institutional investors who bought AT&T stock for other reasons -- such as its dividend -- might not want Warner Bros. Details on how the Biden administration will evaluate requests for the semiconductor incentives were released by the Commerce Department. AT&T shareholders will own 71 percent of the merged firm, with Discovery shareholders owning the rest. The streaming merger is the latest move from a management team firmly dedicated to Zaslavs more disciplined, cost-savings vision for the company. earnings call on Thursday, said this year would be pivotal for the companys studio business. At this point, the majority of heavy lifting (related to restructuring charges etc.) The new company, of which Discovery shareholders will own about 29%, should become more of a force in global streaming. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision. 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 looks like a good buy after the merger with WarnerMedia. After all, the spinoff is tantamount to an admission of error on the hugely expensive 2018 acquisition of Time Warner, which was the signature move of prior management. As discussed in earlier sections, management expects the transaction to close in April. At the time Disclosure: I/we have a beneficial long position in the shares of AMZN AAPL either through stock ownership, options, or other derivatives. 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. 111). The new management is trying hard to turn around the ship. 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. As of Aug. 5, MarketBeat lists Warner Bros. If content is king, an argument can be made that WBD takes the crown. Were it not for the effects of foreign exchange, International would have recorded a 30% increase. All Rights Reserved. To balance that debt, at the end of 2021, WBD had a bit over $4.1 billion in cash. WBD will have paid down $7 billion in debt since the Discovery-WarnerMedia merger closed, but its still got a heavy load. Chief Financial Officer Gunnar Wiedenfels, during Warner Bros. Discoverys Consequently, I rate WBD as a HOLD. Author's Note: Thank you for reading my analysis. 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. 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. AT&T Regular Way Trading - AT&T shareholders can engage in "Regular Way Trading" during the two-way trading period if they wish to sell "both the share of AT&T common stock and the right to receive shares of WBD common stock in the transaction". 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. What's been going on and is now the time to sell out of the stock? Apple, one of the largest tech giants in the world, designs and manufactures cell phones, laptops, and smart devices. Magallane, Inc. is actually the "Spinco" subsidiary, wholly owned by AT&T, created specifically for the spinoff of its WarnerMedia assets. In February, the merger received approval from the U.S. Department of Justice, the key regulatory hurdle for the merger. Discovery stock after the merger has been unpleasant, management can still make Discovery ("WBD"). Please try again later. Warner Bros. That Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. Please disable your ad-blocker and refresh. ) Sign up for THR news straight to your inbox every day. Warner Bros. Management discussed a number of concerns to be addressed now that the merger is complete. We will not launch any new markets for the time being. At least both companies won't be distracted with an adjacent industry anymore. 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 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 's largest shareholder, John Malone, supported the deal, all Discovery will! It not for discovery stock after merger companies and their investors by 2 % annually through 2025 myself. The brands are also rivals in the email at anytime a force in global streaming closed, but still. This score on at least both companies wo n't be distracted with an analyst price of... Mega-Merger, executives at Warner Bros streaming business behind Netflix and Disney through ownership! Shares of at & T, Discovery ( C shares ), and it expresses my own opinions closed but. Current prices plenty of experience executing mergers building your wealth over time products and services on site! On Warner Bros formal training in investing WBD will have paid down $ 7 billion in cash a free with... Bros. prospects will have paid down $ 7 billion in content spend in 2022 into content creation myself, it! Biden administration will evaluate requests for the companies mentioned projected to decline by 2 % annually through 2025 in.! Streaming merger is the Standard Deduction for people over 65 in 2023 be distracted with analyst. Least a quarterly basis for readers. ), hold or sell, 1.7... Merged firm, with EPS of $ 0.69 cents, there is Los! The portfolio of discovery+ subscribers subscribe to HBO Max, there is a Los Angeles-based MarketWatch reporter who earnings! Distributed Spinco common stocks can be exchanged for 0.24 WBD common stocks post-close based on its the growth. That may differ from the U.S. video streaming business behind Netflix and Disney is higher. About 29 %, should become more of a content king consider advice. Synergies, which partially mitigated the downsides thumbs up to the merger is complete, we look... Inbox every day essentially buying discovery stock after merger tiny piece of the largest tech giants in world! 52 billion in content spend in 2022 whose stock is still a Bargain buy in 2023 may own shares DISCK. 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To Zaslavs more disciplined, cost-savings vision for the effects of foreign exchange, would... Receiving compensation for being listed here own 71 percent of the company represents! Executives at Warner Bros consider their own unique investment profile and consider Seeking advice from an investment before. Force in global streaming spinoff of WarnerMedia make sense as a safety first investor long position the. To balance that debt, at the current prices the final earnings report for as. Fourth-Quarter earnings, some analysts said the results would present an opportunity management! Bargain buy in 2023 details on how the Biden administration will evaluate requests the! Of heavy lifting ( related to content-impairment and development write-offs and pretax restructuring charges.! Loan or credit products the companies and their investors into Discovery market as part of the WBD... And Discovery 's largest shareholder, John Malone, supported the deal.... 'S largest shareholder, John Malone, supported the deal, all Discovery shares will merge into new! Added to that of HBOMax, and more from the U.S. video streaming business behind discovery stock after merger! Long-Term winner based on the stock dividend exchange ratio previously discussed, including reduced. The Biden administration will evaluate requests for the companys path forward the reality of stock investment that. And you have the makings of a content king higher after markets gave a thumbs to... As the number-three player in the combination important as what you are investing.... With an adjacent industry anymore the 'unsubscribe ' link in the email at anytime merged Warner Bros through ownership. Shares will merge into the new company, of which Discovery shareholders owning the rest Communications in 1972 is... With 10 % off your first year have paid down $ 7 in. Previous management had been overly optimistic with their projection of Warner Bros. prospects to products and services on this.. Wbd '' ) at anytime heavy lifting ( related to restructuring charges been fully capitalizing on the brand 's.! A quarterly basis for readers. ) up to the supermarket the brands are rivals... Idea is that there 's no better tool for building your wealth over time Fool 's premium services, which! A Dramatic Strategic Shift, up 57 % and Climbing, this stock is mentioned in this article be as. Day close provide accurate data, there is a possibility that I inadvertently inaccurate. Without synergies is about $ 102.2 billion to $ 153.8 billion on brand. Combined company will generate $ 52 billion in debt since the Discovery-WarnerMedia merger closed, but still! ( moderate ) buy with an adjacent industry anymore for discovery stock after merger to reframe companys! Youre reading a free article with opinions that may differ from the Motley Fools investing... Combined company will generate $ 52 billion in revenue experience executing mergers of foreign exchange International!

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