2024-04-16 03:38:39 ET
Summary
- Warner Bros. Discovery's shares are at their lowest point since the merger with Discovery, despite positive financial results in FY 2023.
- The merger has led to increased revenue and reduced operating expenses, but the company's high debt is a concern for investors.
- Yet, WBD has quality media assets with this debt.
- By de-levering and riding free cash flow growth in streaming, even conservative assumptions about future cash flows show undervaluation.
We're seeing the fruits of the Warner Bros. merger with Discovery that led to the current company Warner Bros. Discovery, Inc. ( WBD ). With FY 2023 results out in February to show how well this merger has gone, the market doesn't seem too happy about it....
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Warner Bros. Discovery: Highly Undervalued Despite Debt Risk