Get the latest gossip
Warner Bros. Discovery Stock Falls After Analyst Downgrade on Lower M&A Likelihood, Slower Max Growth, Ad Declines
Wells Fargo downgraded Warner Bros. Discovery stock, citing a lower change of M&A and negative trends in its TV and streaming businesses.
The analysts wrote, “even if [an M&A transaction] makes sense we don’t see any urgency in an election year.” Paramount Global, or some of its assets like CBS, are or could be available, they added, “but equity investors have a very limited tolerance for more debt regardless of the strategic rationale.” The company could boost adjusted earnings and free cash flow by licensing marquee titles like “The Sopranos,” “Game of Thrones” or “Friends” to third-party streamers instead of Max — which could be worth billions of “untapped” revenue potential. HBO’s originals slate is “certainly stronger in ’24” and could support Max net adds beating Wall Street expectations while a “licensing-first strategy” could re-accelerate earnings, Wells Fargo wrote.
Or read this on Variety