- Discovery is merging with WarnerMedia, combining the worldwide distribution of the former with HBO, CNN, sports rights, and iconic DC brands like Wonder Woman, Batman, and Superman.
- The new company has worldwide distribution matched only by Netflix, and IP exceeded only by Disney, plus CNN, the NBA, NHL, MLB, March Madness, and the Olympics.
- Initial content spend target is $20 billion, exceeding Netflix's $17 billion 2021 guidance. The direct to consumer service, combining HBO Max and Discovery+, will be a well funded homerun.
- Despite the heavy investment in growth initiatives, the company is a cash flow machine, guiding to $3.65 a share for 2023. With a strong growth profile, that's just the beginning.
- The stock price is down for non-economic, technical reasons: Famously dividend-focused AT&T shareholders will receive 71% of Discovery stock and may sell immediately since Discovery pays no dividend.
For further details see:
Discovery Will Easily Compete With Netflix And Disney