Barry Diller Expresses Interest in Acquiring CNN
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: seekingalpha
- Acquisition Interest: Media mogul Barry Diller approached Warner Bros. Discovery last year regarding a potential acquisition of CNN, although no serious actions were taken, indicating his ongoing interest in the network.
- Financial Outlook: Warner Bros. disclosed that CNN's revenue is projected to reach $1.8 billion by 2026, with expectations of growing to $2.2 billion by 2030, highlighting the network's profitability and market potential.
- Market Valuation: Analysts currently value CNN at approximately $4 billion, reflecting its significant position in the media landscape and potential attractiveness to investors.
- Strategic Hurdles: Warner Bros. is reluctant to divest CNN due to existing carriage agreements with cable providers and potential high tax liabilities, suggesting that the acquisition process may encounter complex legal and financial obstacles.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.980
Low
14.75
Averages
24.98
High
30.00
Current: 27.980
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Studios, Networks and DTC. Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to its networks/DTC services as well as third parties, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market, and others. Networks segment primarily consists of its domestic and international television networks. DTC segment primarily consists of its premium pay-TV and streaming services. Its brands and products include Discovery Channel, Max, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Warner Bros., and Cartoon Network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Barry Diller Expresses Interest in Acquiring CNN
- Acquisition Interest: Media mogul Barry Diller approached Warner Bros. Discovery last year regarding a potential acquisition of CNN, although no serious actions were taken, indicating his ongoing interest in the network.
- Financial Outlook: Warner Bros. disclosed that CNN's revenue is projected to reach $1.8 billion by 2026, with expectations of growing to $2.2 billion by 2030, highlighting the network's profitability and market potential.
- Market Valuation: Analysts currently value CNN at approximately $4 billion, reflecting its significant position in the media landscape and potential attractiveness to investors.
- Strategic Hurdles: Warner Bros. is reluctant to divest CNN due to existing carriage agreements with cable providers and potential high tax liabilities, suggesting that the acquisition process may encounter complex legal and financial obstacles.
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Netflix Reports Strong Earnings but Stock Drops
- Strong Earnings Report: Netflix's Q4 revenue exceeded $12 billion, marking an 18% year-over-year increase, with earnings per share at $0.56, slightly above Wall Street expectations, indicating stable performance in a mature market.
- Slower Growth Forecast: Management projects revenue growth for 2026 to be between 12-14%, down from 16% in 2025, raising investor concerns about future growth and causing the stock to drop approximately 5% post-earnings.
- Increased Content Investment: Netflix plans to boost content spending by 10% to $18 billion in 2026 to enhance its content library and maintain market competitiveness, although this will increase the company's debt burden.
- Acquisition Strategy Shift: Netflix amended its bid for Warner Bros. Discovery to an all-cash offer valued at approximately $72 billion, aiming to secure a vast content library, but this will raise its debt from $34 billion to $42 billion.
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