| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Warner Bros. Discovery (NASDAQ:WBD) reported third-quarter financial results this week, while the company undergoes a strategic review that include a sale of pieces of the company or the entire thing.
An analyst says the quarterly results show the potential value of the company.
The WBD Analyst: Bank of America Securities analyst Jessice Reif Ehrlich reiterated a Buy rating on Warner Bros. Discovery with a price target of $24.
The Analyst Takeaways: Momentum for the company's studios segment shows potential value during the strategic review, Ehrlich said.
"WBD's 3Q results reflect underlying improvement in the Studios and Streaming segments but persistent challenges in Linear," Ehrlich said.
The analyst said a sum-of-the-parts valuation for Warner Bros. Discovery would see the Studios & Streaming segments trading at a multiple above 1x for the Linear segment.
Ehrlich said the strategic review "provides near-term valuation support" ahead of a planned separation of the company into two.
Outperformance and momentum for the Studios & Streaming business could boost the valuation during the sale process, the analyst added.
Read Also: Trump Vs. Netflix, Apple: White House Warns Warner Bros. Should ‘Think Really Hard’ About Bidders
Along with this week’s earnings results, Warner Bros. Discovery may have received some bad news for its Studios segment.
A bankruptcy court awarded the Village Roadshow's film library derivative rights to Alcon, according to the Hollywood Reporter.
Alcon submitted a winning bid of $18.5 million in the bankruptcy process. A higher bid of $19.5 million submitted by Warner Bros. Discovery was later rebuffed with the company now considering an appeal in the case.
Village Roadshow was a long-time partner and financier of many movies that are part of the Warner Bros. Discovery library. Among the films are Ocean's Eleven, The Matrix, Joker and Wonka. The company filed for bankruptcy earlier this year.
Potential sequels and spinoffs of those film franchises could now get more complicated and need a partnership with Alcon under the terms of the bankruptcy.
"Alcon looks forward to working collaboratively with Warner Brothers, as we have for over a quarter-century, to partner in the exploitation of the derivative rights to these many great films across multiple platforms," Alcon co-CEOs Andrew Kosove and Broderick Johnson said in a statement.
While Alcon and Warner Bros. Discovery have worked together, there could be a strain in their relationship with Alcon suing Warner Bros. Discovery last year over images used by Tesla at its Robotaxi Day event with WBD’s partnership with Tesla on the event.
WBD Price Action: Warner Bros. Discovery stock is up 0.4% to $22.52 on Friday versus a 52-week trading range of $7.52 to $23.06. Warner Bros. stock is up 111.2% year-to-date in 2025.
Read Next:
Image: Shutterstock
Posted In: WBD
