With the upcoming split set to render entertainment giant Warner Bros. Discovery (WBD) into two parts, Warner Bros and Discovery Global, there are those who are wondering about the person who seems to be consigned to taking on a sinking ship: Gunnar Wiedenfels. But shareholders seem less than convinced by the closer look, and sent Warner shares down fractionally in the closing minutes of Monday’s trading.
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At first glance, one might wonder what Wiedenfels did to be saddled with the likely catastrophe that is Discovery Global, which will contain most of Warner’s linear television operations. Linear television, as we know, is not exactly a growth industry, and that will be Discovery Global’s primary stock in trade.
But Wiedenfels may actually be able to do some good, even if the odds of a complete turnaround in a market where its primary service is experiencing declining demand. But given that Wiedenfels has already been instrumental in paring back the debt load on the company from $56 billion to around $35 billion in the course of about three years, he may have a better plan in mind than expected. Wiedenfels noted that the networks do still bring in cash, referring to the portfolio as a “cash cow,” and with no near-term debt maturities, they may be able to raise enough cash to keep business coming in and innovate new solutions as well.
Narrated by Tom Hanks
Remember how, for a while there, Morgan Freeman was one of the best narrators around? There are signs that other celebrities may be wanting a crack at that market too, as both Tom Hanks and Dia Mirza got in on the action as part of Discovery’s “factual entertainment slate.”
Mirza narrated The Dooars World, which went to the eastern Himalayas and the Dooars region therein. This featured a slew of exotic wildlife, including the red panda, a one-horned rhinoceros, and an abundance of unusual birds. Meanwhile, Hanks took on narrating duty for The Americas, an 11-part series that takes on all the various ecosystems found throughout North and South America. This move has already proved welcome for Hanks, as he is up for an Emmy for Outstanding Narrator.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 10 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 46.42% rally in its share price over the past year, the average WBD price target of $13.71 per share implies 13.54% upside potential.
