In 2021, AT&T Inc. and Discovery Inc. agreed to merge AT&T’s WarnerMedia assets with Discovery Inc.’s platform to create a standalone global entertainment company, now known as Warner Bros. Discovery Inc. Analysts are now comparing the new media firm with The Walt Disney Co.
Evercore ISI analyst Vijay Jayant upgraded WBD to Outperform from In-Line with a price target of $40, down from $45 (61.4 percent upside).
The merger of Discovery with Warner Media created the second-largest media company WBD, after Disney, and the third-largest streaming player with “the assets to successfully compete” in the global direct-to-consumer video streaming opportunity. The Reverse Morris Trust spin-merge transaction structure is likely to create a massive stock supply.
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