On May 17th, Discovery and WarnerMedia (owned by AT&T) announced their intention to combine operations to create a global entertainment leader (DISCA), (DISCB), (DISCK). This combination will result in one of the deepest content libraries in the world
Discovery And WarnerMedia: A New Streaming Powerhouse At An Attractive Valuation
Summary
- The announced merger between Discovery and WarnerMedia will create a global media powerhouse with a large content library and valuable IP.
- It gives the combined company the scale and reaches to effectively compete with Netflix and Disney+ in the Direct-to-Consumer space.
- So far, the market is not giving credit to this transformative deal and there is a path for shares of Discovery to at least double by 2025.
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