Redbox Parent Company Files for Bankruptcy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2024
0mins
Source: WSJ
- Redbox Owner Bankruptcy: Redbox's owner filed for bankruptcy with almost $1 billion in debt due to lenders, including HPS Investment Partners, not agreeing to potential refinancings.
- Chicken Soup for the Soul Entertainment: The company that owns Redbox and streaming services sought chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Del.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.240
Low
14.75
Averages
24.98
High
30.00
Current: 27.240
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 Streaming, Studios and Global Linear Networks. The streaming segment primarily consists of its premium pay-television and streaming services. The 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 third parties and its networks/streaming services, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. The Global Linear Networks segment primarily consists of its domestic and international television networks.
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.
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- Focus on Live Content: With fewer major sporting events, media firms are emphasizing live content, particularly NFL games, which are expected to draw larger audiences and boost ad revenues, reflecting a strategic shift towards high-value programming.
- Mergers and Consolidation: Warner Bros. Discovery's ongoing merger with Paramount, expected to close in Q3, aims to enhance content library depth and market competitiveness, which could drive advertising sales growth in a consolidating industry.
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- AI Technology Utilization: Media companies are leveraging artificial intelligence to enhance the ad buying experience by enabling faster data collection and analysis, helping advertisers more effectively assess ad performance and maintain competitiveness in an uncertain market environment.
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- New User Growth Trend: According to Antenna's report, 71% of new subscriber growth over the past two years has come from ad-supported tiers, reflecting a growing consumer acceptance of lower-priced ad-supported models, which could reshape the market landscape.
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