Oprah sells most of OWN shares to Discovery for $36M

Dec. 22, 2020 5:52 PM ETWarner Bros. Discovery, Inc. (WBD)WBDBy: Carl Surran, SA News Editor16 Comments
  • Oprah Winfrey has sold most of her stake in the OWN cable channel to majority owner Discovery (NASDAQ:DISCA) for more than $36M, boosting Discovery's stake in OWN to 95%.
  • The channel was co-founded by Oprah and Discovery in 2011, and she had an agreement with Discovery where she could require the company to purchase part of her interest starting in 2016, and Discovery purchased a 25% stake from her in 2017 for $70M.
  • The latest deal suggests the value of the business has declined, as smaller cable networks struggle to compete in a streaming world.
  • The OWN content is expected to be part of the new Discovery+ streaming service set to launching next month.
  • With the creation of Discovery+, DISCA will finally leverage its extensive IP library into the streaming world, and while "profitability will suffer in this process, the growth and multiple expansion opportunities going forward are worth the sacrifice," Vladimir Dimitrov writes in a bullish analysis posted recently on Seeking Alpha.

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