I received shares of WBD stock when it split off in April, 2022, from AT&T, @ $23. a share! Within a few days, it went up to $27. a share, but quickly starting dropping! On 04/19/22, I sold my shares @ $23.72 a share! Today, 10/02/22, they are a little over $11! I ask you, how could a company with as successful a track record as Warner Bros., have gotten into such financial difficulty? If Jack Warner were alive, he'd be 'cleaning house' at Headquarter's!

Also bought WBD under 12.50 last week.

Great video Thijs. I liked the deptness of your analysis on WBD. It's a big bet but the management and company are comitted to success. Even before the merger Warner Bros was making 2B in cashflow (out of 40ish in Revenue, see AT&T 10k), so I believe they might pull this debt out. Thanks once again and keep up the good work!

Great video Thijs, and very nice that you did this video since we wanted it!

Super interesting analysis! Definitely a stock to look out for

Excellent analysis, I really like your content

I wanna see the bear case too now!

Also long on this one. That EPS of 10 (!!!) in 4 years, I think it's too optimistic, but assuming analysts are 50% off, and, a very conservative multiple of 10, it's already a 4 or 5x. It's a very compelling risk-reward bet. You should look out kyndril, a IBM spin-off that is away oversold.

If you consider they have 2B of restructuring cost this year and possibly 3B of FCF, she should be Able to do at least 5B per year, just what they need to pay almost all the 15b due from 23-25

have also been buying little bit lately

Hmmm still not motivated to buy them share. Analysts are not always reasonable. If they are far from the real number, then... Too much debt. Not for me. It looks like the management are making a lot of promise. No track record history. Thanks for the video :)

I know the streaming is just a piece of the business and there are many other factors to consider while investing in WBD. However HBO Max lauched in my country this year and I'm actually really surprised how much great content there is. Previously we used Netflix and there was just too little good content, had to take some Amazon Prime on the side and still there was a struggle to find decent stuff to watch. Now we just use HBO Max. Disney+ we have never even tries since we have no interest in their content, which seems to be mostly crappy reboots and superhero stuff.

In my case, my strategy will be to wait and see. I love your videos a ton Thanks!

One of my favorites

Btw, is the return from the DCF with or without paying off debt? a huge part of their FCF would go to debt no?

I'm already way too overweight on this one and I hesitate to buy more but I still do every few months for much less than before. 50% down is tough to hold but fundamentals are not getting worse. Netflix is just a slave to it's own business model and at the time when I was buying wbd (disca) , Netflix valuation was extremely rich. Hope Zaslav's cleaning won't influence new content and talented people already in the company

NEW IDEAS: Winnebago Industries (motorhomes manufacturer, cap=1.8B, 15% of Norbert Lou’s portfolio), Builders FirstSource (supplier of building products, cap=9.5B, 10% of Greg Alexander’s portfolio) and Qorvo (radio frequency and power technologies to mobile, infrastructure, the IoT, defense/aerospace and power management markets, cap=9.4B, 10% of Seth Klarman portfolio). All have pretty good PE, PB, ROE and operating margins! What is your opinion on them?

Great video Thijs. Appreciate all your hard work. Beyond the debt, I'm also concerned about share dilution. In that press release, WBD announced their total shares outstanding went from 589 million to around 2.29 billion. That seems to be extreme dilution. Do you think, given WBD's low price, they will continue to dilute in order to raise the necessary funds to pay the debt? How should we think about the risk of dilution when it comes to seeking a proper valuation? Thank you

One of the hardest debt burden in the stock market. This is to much for me.

I am afraid of these companies . Very fierce competition. Price should be very very appealing. What do you think of paramount ? Better balance sheet

First of all i would not buy in at the moment we will see price to drop under 12 maybe 10. Thats the time to buy

Been hestitating. The debt is really scary.

Definitively asymetric reward to risk! I initially bought "disca" at 24 and now doubled down at 13! will add more if it drops! Lets gooooooooooo!