2024-04-13 04:36:53 ET
Summary
- Warner Bros. Discovery has been heavily beaten down since it started trading, falling close to 70%.
- WBD produces substantial amounts of free cash flow which is going unrecognized by the market as they currently trade at a dirt cheap valuation.
- Although WBD has a substantial debt load, they have a concrete plan to pay it down over time ultimately alleviating concerns about being overleveraged.
Investment Thesis:
Warner Bros. Discovery ( WBD ) is a media and entertainment business that operates primarily in the segments of Studios, Networks, and DTC. Some notable brands they own include DC, Game of Thrones, Harry Potter, and many more household names while some of the primary platforms they operate through are TNT Sports, Max, and CNN. Warner Bros. Discovery was formed through a Reverse Morris Trust where AT&T (NYSE: T ) spun off warner media and merged it with Discovery....
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Warner Bros. Discovery: Massive Free Cash Flow Is Overlooked