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Discovery Communications, Inc (DISCA)

  • Mon, Mar. 23, 9:39 AM
    • After recently lowering its joint bid with Foxtel (NASDAQ:NWSA) in a months-long auction process for Australia's Ten Network, Discovery Communications (NASDAQ:DISCA) is bailing out of the proceedings.
    • The two companies had already dropped a push for full control of Ten after running into pushback from Bruce Gordon, the owner of regional broadcaster Win Corp. who's already at a legally mandated limit of 14.99% ownership of Ten.
    • Discovery reportedly balked at Ten's suggestion that it take only a 14.99% stake itself, rather than a controlling share.
    • Foxtel now must decide whether to pursue the minority stake on its own.
    • Previously: Discovery gives back some gains on Fox merger denials (Feb. 23 2015)
    • Previously: Discovery/Foxtel frontrunner in bid for Ten (Nov. 23 2014)
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  • Thu, Mar. 12, 7:40 PM
    • Discovery Communications (NASDAQ:DISCA) prices a $600M offering of senior notes due 2027, at 1.92% YTM.
    • The sale should close next Thursday. The notes are unsecured, and the company expects proceeds to repay 3.7% notes due in June and for general purposes.
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  • Tue, Feb. 24, 3:59 PM
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  • Mon, Feb. 23, 12:33 PM
    • Discovery Communications (NASDAQ:DISCA) gives back much of its morning surge (shares were up 9%; now back to +5%) as the company joins FOX in denying a story (Fox says "categorically untrue") that the two companies talked merger.
    • Maybe the rumor comes from a misunderstanding about a joint bid Discovery has put in with Foxtel (NASDAQ:NWSA) for Australia's Ten Network?
    • Sanford's Todd Juenger says if the companies are telling the truth and they're not talking, then maybe they should be: "We believe a merger between Fox and Discovery would make strategic sense on a number of levels ... We still love the idea of Discovery as Fox’s next best alternative" to its failed tie-up with Time Warner.
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  • Mon, Feb. 23, 10:51 AM
    • Discovery Communications (NASDAQ:DISCA) is up 9% this morning on very heavy volume as rumors fly about a tie-up with Twenty-First Century Fox (NASDAQ:FOXA).
    • Sources told Australia's Financial Review that any talks were "very, very early days," but a merger would represent a new aggressive direction for Rupert Murdoch's company after its bid for Time Warner was rejected last year.
    • A combination of Fox and Discovery properties would bring in more than $38B in annual revenue.
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  • Mon, Feb. 23, 1:49 AM
    • "The story is categorically untrue," said a Twenty-First Century Fox (NASDAQ:FOXA) spokesman in response to a rumor of having held takeover talks with Discovery Communications (NASDAQ:DISCA).
    • The Australian Financial Review reported today that senior executives from both companies met about two weeks ago to discuss a tie-up that would create a $100B sports, movie and entertainment giant.
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  • Fri, Feb. 20, 5:37 PM
  • Thu, Feb. 19, 9:51 AM
    • Discovery Communications (NASDAQ:DISCA) has opened 2.7% lower after missing expected revenues in Q4 -- due to the pressure a stronger dollar put on international networks that make up more than half its revenues.
    • Though ad revenue was up globally, international total revenue growth was hit by 10% on FX concerns, the company says.
    • Segment breakouts: U.S. networks revenue, $745M (up 1%); International networks revenue, $884M (up 17%); Education and other, $43M (down 9%).
    • Adjusted operating income (before depreciation/amortization): U.S. networks, $405M (down 7%); International networks, $329M (up 11%).
    • For the full year, revenues of $6.265B were up 13% on international growth (up 28% vs. a flat result in U.S.).
    • Q4 EBITDA of $638M came in slightly below an expected $640M.
    • Free cash flow of $390M was up 23% Y/Y.
    • Press release
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  • Thu, Feb. 19, 7:12 AM
    • Discovery Communications (NASDAQ:DISCA): Q4 EPS of $0.43 beats by $0.02.
    • Revenue of $1.68B (+9.1% Y/Y) misses by $20M.
    • Press Release
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  • Wed, Feb. 18, 5:30 PM
  • Mon, Feb. 9, 3:36 PM
    • Discovery Communications (DISCA +0.7%) received a downgrade from FBR Capital Markets, to Market Perform from Outperform.
    • The firm substantially lowered the price target for the stock, $13 to $30. Shares are currently trading at $30.13.
    • Most analyst opinion on the stock centers around Hold ratings. Shares are just a bit above their 52-week low and are down about 29% (split-adjusted) over the past year.
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  • Wed, Jan. 21, 1:00 PM
    • Dish Networks (DISH -0.2%) won a significant court battle in L.A. against Fox Broadcasting over the company's Dish Anywhere app.
    • The ruling from a federal judge applied some of the principles from the Supreme Court's look at the Aereo case.
    • The opinion from the court indicated that watching content on mobile devices and tablets through Dish Anywhere doesn't qualify as a breach of copyright law.
    • The use of Dish's PrimeTime Anytime and AutoHop features were also deemed as fair use.
    • Many programmers seemed to have anticipated the legal decision and already negotiated with Dish to disable ad-skipping for a period of time after a show airs.
    • The ruling is sure to have been noticed on Madison Avenue where the largest (and smarter?) ad spenders continue to increase digital spending over broadcast/cable TV buys.
    • Big advertisers: MCD, PG, BUD, WMT, TGT, K, GIS, TM, GM.
    • Programmers: CBS, TWX, FOXA, SNI, AMCX, VIA , VIAB, DISCA.
  • Wed, Jan. 21, 11:35 AM
    • Analysts think Viacom (VIA, VIAB) stands exposed to protracted carriage fee battles with some indications out there that pay-TV subscribers won't flinch if the company's programming is pulled from packages.
    • A combination of Viacom with a complementary programmer such as CBS (CBS +0.3%) or Discovery Communications (DISCA +1.3%) would give it some extra negotiating clout and make it more attractive to consumers as skinny bundle come online.
  • Thu, Jan. 1, 2:19 AM
  • Dec. 10, 2014, 7:06 AM
    • Discover Communications (NASDAQ:DISCA) CEO David Zaslav thinks European sports provide enormous upside for the company.
    • The exec notes rights fee in Europe for popular sports such as cycling and tennis are much lower than what ESPN and Fox have to pay in the U.S. for coverage of major leagues.
    • Discover Communications holds a 51% stake in Eurosport.
    • Zaslav made his comments during his presentation at the UBS Global Media and Communications Conference (webcast).
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  • Dec. 3, 2014, 7:43 AM
    • Americans decreased the amount of daily time spent watching TV by 4.4% Y/Y to 4 hours and 32 minutes in Q3, according to a new report from Nielsen.
    • The amount of time viewing video on the Internet and time-shifted content both rose during the quarter.
    • "What used to be a schedule to watch programming now seems like little more than a suggestion," observes Nielsen.
    • This year's upfront ad meetings saw flat sales for broadcast networks and a 6% decline in ad sales for cable networks.
    • Related stocks: NFLX, FOXA, CBS, CMCSA, DIS, SNE, AMCX, TWX, VIAB, DISCA, SNI.
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Company Description
Discovery Communications Inc is a media and entertainment company. It provides programming across multiple distribution platforms worldwide. The Company also provides educational products and services to schools & operates digital media services.
Sector: Services
Industry: CATV Systems
Country: United States