Discovery-Warner Merger: Future Prospects And Updated Targets
Summary
- With Warner Media and HBO Max's acquisition, Discovery is poised to enter the big league of top streaming companies offering one of the widest content libraries.
- With complementary offering and focused leadership, I believe the company will gain significant traction in direct to consumer space.
- At the current share price of Discovery A shares, the new merged company's implied market capitalization is $77.8 bn versus $216.8 bn of Netflix and $308.7 bn of Disney.
- Discovery's stock provides significant upside for investors over the next three to four years as its combined offering with HBO Max gains traction.
Analyst’s Disclosure:I am/we are long DISCA, DISCK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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