The IPOX® Watch: Warner Bros. Discovery
COMPANY DESCRIPTION
Warner Bros. Discovery, Inc. (WBD) is an American mass media and entertainment conglomerate headquartered in New York City. The company was formed as a result of WarnerMedia's spin-off by AT&T and its subsequent merger with Discovery, Inc. on April 8, 2022. This merger brought together WarnerMedia's vast array of film and television studios, including the flagship Warner Bros. Pictures, comic book publisher DC Comics, and Home Box Office, Inc. (which encompasses HBO, Cinemax, and Magnolia Network), with Discovery's portfolio, which includes channels like Discovery, Food Network, Cartoon Network, TLC. The combined entity also owns news channel CNN, various sports networks (e.g. NBA TV, Eurosport) and global streaming platforms like Discovery+ and Max (formerly HBO Max).
BUSINESS MODEL
Warner Bros. Discovery operates in the media and entertainment sectors, generating revenue through various channels. This includes content production and distribution, advertising on its numerous TV channels and digital platforms, subscription fees from its streaming services like Max and Discovery+, licensing of its intellectual properties, revenue from films and more. The merger's goal was to leverage the combined content libraries and production capabilities of both entities to enhance their streaming offerings and compete more effectively in the global streaming market.
MERGER HISTORY
On 04/11/2022, Warner Bros. Discovery, Inc. began trading on Nasdaq after the merger between Discovery and AT&T spin-off WarnerMedia had completed 04/08/2022. The shares gained +1.27% on their first day of trading, closing at $24.78/shr, giving the combined entity a market capitalization of about $60 billion at launch. AT&T shareholders were given 0.24 shares of Warner Bros. Discovery for each AT&T share they own. Warner Bros. Discovery, Inc. was included in the IPOX® 100 U.S. Index (ETF: FPX US, FPX LN) on 03/20/2023 and gained +1.26% since addition to the index.
