Stock Market Sell-Off: Is Warner Bros. Discovery a Buy?
It's been a year since WarnerMedia merged with Discovery to create a new entertainment giant, Warner Bros. Discovery (NASDAQ: WBD). With the company stock down 40% from where it was 12 months ago, some investors may question whether Warner Bros. Discovery is a worthwhile bet. Let's explore the current state of the business and whether there are signs its prospects may improve over the long term.
Warner Bros. Discovery's first year as a brand has certainly been storied; from shutting down movie projects to pulling shows from its HBO Max streaming service, the company has made headlines for upsetting many people in Hollywood. Those moves have also snagged the attention of a group of U.S. House Democrats who are now urging the Department of Justice (DOJ) to open an investigation into the formation of Warner Bros. Discovery, raising the specter of the deal possibly being undone.
Of course, it is important to highlight that the DOJ very rarely unwinds mergers, and as things stand, there is no active investigation, just a call for one. However, the lawmakers' complaints do highlight a key issue for Warner Bros. Discovery stakeholders -- the company's current debt burden.
Source Fool.com
