Discovery And WarnerMedia: A New Streaming Powerhouse At An Attractive Valuation

HFR Capital
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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.

Streaming télévisuel, concept de mur multimédia
Photo by simpson33/iStock via Getty Images

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

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Analyst’s Disclosure: I am/we are long 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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