CatLane Shares of behemoth media and entertainment concern Warner Bros. Discovery, Inc. ( NASDAQ: WBD ) are down over 70% since the April 2022 merger that established it consummated.
So far, sagging advertising revenue at its Networks segment has not been offset by improvements at its DTC division as it restructures while navigating a secular content consumption shift. With the average interest rate on its ~$43 billion of debt lower than overnight money yields and trading at under 2.5 times TTM free cash flow, the recent insider buying merited further investigation.
A full analysis follows below. Seeking Alpha Company Overview: Warner Bros. Discovery is a New York City-based media and entertainment conglomerate, providing content, brands, and franchises across television, film, streaming, and gaming.
The company is known for iconic brands too numerous to completely list, but include Warner Bros. Motion Picture Group, HBO, Discovery Channel, Batman, Superman, Wonder Woman, Harry Potter, Game of Thrones, and Lord of the Rings. With roots dating back to 1923, the current iteration was formed when Discovery merged with the WarnerMedia business of AT&T ( T ) in April 2022, with its first trade executed at $24.
08 a share. Its stock currently trades at just over seven bucks a share for a market capitalization of just under $18 billion. Business Segments The company views its operations through the lens of three business segments: Studios; Networks; and DTC.
Studios consists of the p.
