Warner Bros. Discovery Just Gave You a Good Reason Not to Buy Its Stock
Since WarnerMedia and Discovery merged to create Warner Bros. Discovery (NASDAQ: WBD) earlier this year, there has been much speculation about the company's future. One of the most recent whispers about Warner Bros. Discovery has been that rival Comcast (NASDAQ: CMCSA) is keen to acquire the company. However, Warner Bros. Discovery CEO David Zaslav reportedly quashed the rumors during a recent all-hands meeting, saying the company is not for sale. Here's what Zaslav's statement means for investors, and why they might want to avoid Warner Bros. Discovery's stock.
According to various industry outlets, Zaslav did not address the Comcast speculation head-on, but instead framed Warner Bros. Discovery's current standing as a key reason why it was not entertaining a sale. "We have the strongest hand in the industry," Zaslav reportedly told Warner Bros. Discovery employees. "We have everything we need to be successful to be the biggest entertainment media company in the world."
The market is seemingly yet to be convinced by Zaslav's bullish belief in the company. At the time of writing, Warner Bros. Discovery's stock is hovering around $12 per share, roughly half of its value when the company came into being following the merger of WarnerMedia and Discovery this past spring.
Source Fool.com
