Wall Street has finally spoken on the now-completed merger that created Warner Bros Discovery.
MoffettNathanson initiated coverage with a “Neutral” rating and a $27 target price. It does see the potential upside of having both HBO Max and discovery+ under one roof for the combined company, but the firm is still concerned about the general slowing of subscriber growth across streaming platforms and whether the size of the total addressable market is smaller than it thinks. Warner Bros Discovery will also still count a significant number of linear networks as part of its portfolio, and the pay TV business is still in decline. That list of networks includes the TNets as well as Food Network, HGTV and Discovery Channel.
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