Calling it entertainment giant Warner Bros. Discovery (WBD) may not be valid for much longer, according to new reports. The upcoming split between the studio operations and the linear television operations will see Warner split into two parts, and interestingly, it will see them split right in the name. Investors, meanwhile, liked what they heard, and gave shares a 1.5% boost in the closing minutes of Monday’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Basically, once the split is actually accomplished, it will leave us with two halves of the former whole. The studio and streaming business, which includes the film and TV studios, HBO, HBO Max, DC Studios, and the Turner Classic Movies cable channel, will all be part of Warner Bros. Meanwhile, the networks operations—including Cartoon Network, TNT, TBS, CNN, Food Network, HGTV, and of course, Discovery Channel, will be Discovery Global.
David Zaslav will continue to head up Warner Bros., while Warner’s chief financial officer Gunnar Wiedenfels will be dispatched to helm the sinking ship that will be Discovery Global. Wiedenfels pointed out, “…our enthusiasm for the opportunities ahead only grows thanks to our leading portfolio of beloved brands and programming, our worldwide footprint for adults, kids, and families…” keeps them all going.
A New Gaming Crossover
While horror buffs eagerly await the arrival of Weapons, the new film from Zach Cregger, Warner and Sawhorse Productions are getting together to bring elements of the film to popular game Fortnite. The move will basically sink Fortnite players into the Weapons world, allowing players to collect props, encounter haunted NPCs, and “…face the mysterious 2:17 AM event.”
This is not the first time that Warner and Sawhorse worked together on a project like this; they were also seen together on Sinners: Survive the Night based on the release of Sinners. While little data was on hand for how many played that last game, it must have done reasonably well for Warner to come back to Sawhorse to make a second round.
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 60.21% rally in its share price over the past year, the average WBD price target of $13 per share implies 5.18% downside risk.
