2024-04-02 17:29:26 ET
Summary
- Investors remain skeptical of the strategies implemented by media CEOs to improve earnings.
- I suggest that media conglomerates should value their business units and consider spinning off or selling parts to reduce debt.
- Specific questions are posed to CEOs of Disney, Warner Brothers Discovery, and Paramount regarding their strategies and financial outlook.
If there's one palpable reality that investors can rely on in valuing stocks in the sector today, it's the certain failure to date of the band aids that top managements have applied to the illness of the media sector: True believers who buy the c-suite mantra that ad support, bundling and cost cutting will ultimately prove to deliver the fat earnings of early sector promise. Skepticism still prevails among many investors, and for good reason....
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Disney And Warner Bros. Discovery: Key Questions For Management