Warner Bros Discovery Inc (WBD)

Shares of Warner Bros. Discovery Inc (WBD) dropped by 5.66% from $12.37 to $11.66 in the trading on Wednesday, December 20, 2023. The reason why WBD down today is due to reports of potential merger talks between Warner Bros. Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish.

• The Merger Talks: The discussions explored the possibility of merging the two media giants, which would create a significant entertainment and news conglomerate encompassing studios like Warner Bros. and Paramount (PARA), along with assets such as CBS and CNN.
• Restrictions on Transactions: Warner Bros. Discovery is currently restricted from entering into any transactions, including mergers, until April 2024 due to a tax statute related to the two-year anniversary of its merger with Discovery.
• Industry Challenges and Investor Reaction: The media industry faces challenges like declining linear television ratings and shifting advertising to streaming. Investors responded negatively to the merger talks, causing Warner Bros. Discovery's stock to drop by 5.7% upon the news, and Paramount's stock to initially rise but end the day 2% lower then. These discussions reflect the broader trend of consolidation in the media industry as companies adapt to the changing landscape of streaming services and increased competition.

Warner Bros Discovery Stock (WBD) dropped by 19.04% from $11.61 to $9.40 in the trading on Wednesday November 8, 2023. The reasons why WBD stock down today include:

• Drop in ad sales: WBD reported Q3 2023 loss of $0.17 per share, nearly triple expectations. Revenue was up 1.6% from a year ago to $9.98 billion, also short of forecasts. Advertising revenue at its Networks segment tumbled 12% to $1.71 billion.
• Direct-to-consumer service subscribers loss: Subscribers to its HBO, Max, and Discovery+ services totaled 95.1 million, a decline of 700,000 from the previous quarter.
• Weak outlook: The company noted ongoing weakness in the ad market, saying it could impact visibility for 2024 due to ongoing impacts from the actors’ strike.

Warner Bros Discovery Stock (WBD) dropped by 5.84% from $10.96 to $10.32 in the trading on Thursday October 12, 2023. The reasons why WBD stock down today include

• Forecast Downgrade: Analysts at KeyCorp reduced their Q4 2023 earnings per share estimates for Warner Bros. Discovery from their prior forecast of $0.04 to $0.03 per share for the quarter.
• Union's talk suspension: Negotiators for media companies were suspending talks after reviewing the latest offer from the SAG-AFTRA actors union. The move dashed hopes of a quick resolution after a deal with film and television writers.

Warner Bros Discovery (WBD) were dragged down 12.02% on Friday following the dispute between media giant Disney and cable provider Charter Communication over the television distribution fees.

https://www.fool.com/investing/2023/09/01/why-warner-bros-discovery-tumbled-today/