Warner Bros. Discovery: Streaming Growth And Ability To Deleverage Present Substantial Upside Potential

Sep. 07, 2022 2:35 PM ETWarner Bros. Discovery, Inc. (WBD)86 Comments
Logan Colhoun profile picture
Logan Colhoun
140 Followers

Summary

  • Warner Bros Discovery has fallen 48% since its spin-off + merger in April 2022.
  • 71% of WBD shares were given to AT&T shareholders, who have largely sold due to the lack of a dividend.
  • Warner Bros Discovery has an impressive collection of Intellectual Property, and has quickly built HBO Max into a top 3 streaming service.
  • The company's ability to deleverage its massive debt load offers substantial upside for WBD shareholders.

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AT&T

Streaming Services by Market Share

JustWatch

WBD Financial Projections

AT&T

WBD Q2 EBITDA Projections

Warner Bros Discovery

WBD Deleveraging Plans

Warner Bros Discovery

DCF Model for WBD

Author

This article was written by

Logan Colhoun profile picture
140 Followers
I'm a current Finance major at Texas A&M. I am the founder of Undergrads Invest and the Undergrads Invest podcast. I am a value investor who looks for high-quality companies that are trading at discounted valuations. I also enjoy special situations investing, where some sort of hard catalyst is creating a market inefficiency.

Disclosure: I/we have a beneficial long position in the shares of WBD 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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