Down 45% From Its High, Is Warner Bros. Discovery A Buy?
In early April, AT&T (NYSE: T) spun off WarnerMedia, its entertainment portfolio consisting of well-known brands like DC Comics, HBO, and Warner Bros., to merge with Discovery, Inc. The resulting company Warner Bros. Discovery(NASDAQ: WBD) was born, but it's had a rough beginning as a public company, with its stock down more than 40% since inception.
Still, here are two reasons for optimism that Warner Bros. Discovery stock can rebound or even reach new highs.
To fund the spin-off and merger, Warner Bros. Discovery paid AT&T over $43 billion, which, combined with Discovery, Inc's debt of $14 billion, created a total gross debt of roughly $57 billion.
Source Fool.com
