Discovery Will Pull Its Market Cap Out Of The Hat, Twice
Summary
- The merger of AT&T’s WarnerMedia and Discovery creates a great opportunity for investors.
- The merged entity will hold one of the largest content libraries with a global reach.
- Summing up the parts and putting conservative multiples based on market peers on operations of the new entity yields a potential return multiple times the investment.
- The upside is high but there’s a floor on the downside with the price depressed following the Archegos saga, despite the execution risk.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of DISCA, DIS either through stock ownership, options, or other derivatives. 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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