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Warner Bros. Discovery: Iger Unlikely To Save Failed DTC Model

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Update - Dec. 14

These restructurings seem to happen all the time after big mergers making the merger virtually worthless and very destructive to shareholders. Also, not exactly sure how HBO Max is more appealing with less content, but WBD will make more in licensing fees. 

-Warner Bros. Discovery (NASDAQ:WBD) chief David Zaslav has spent several of the months since taking over in April by pulling back the sprawling content company's plans, including planned removals of a number of programs on HBO Max - and now we know the fates of some of those shows.

-The company recently announced that it was removing HBO shows Westworld and The Nevers from the service entirely. Those programs and others will find a new home licensed to free ad-supported TV services (such as Pluto TV (PARA) (PARAA), Xumo (CMCSA), Tubi (FOX) (FOXA), Roku Channel (ROKU) and Freevee (AMZN)).


Original article posted Nov. 22

  • Warner Bros. continues to struggle with a horrible model of consumers shifting towards video streaming where costs far exceed revenues.
  • Disney brought back Bog Iger to right the ship in a move that could leave Warner Bros. in a precarious position with a large debt load.
  • The stock isn't appealing, even at $10, unless Iger can tip the failed DTC models towards financial discipline.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
The surprise return of Bob Iger to the CEO position of Disney (DIS) could have huge ramifications for the video streaming sector where Warner Bros. Discovery (NASDAQ:WBD) pays. The streaming model isn't working for the sector and Iger was brought in to fix the problem where costs have escalated and revenues aren't covering higher expenses. My investment thesis remains Neutral on the stock at best with risks that Iger shakes up the sector to the detriment of weaker players.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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