Warner Bros. Discovery: Dumping CNN Won't Solve Problems
- According to deal chatter, CNN is still valued at $10 billion despite challenging viewer numbers.
- Warner Bros. obtains the majority of profits from the Networks division and the value creation would occur with turning around CNN.
- WBD stock isn't appealing with the large debt load and the potential mistake of unloading a profitable business.
Amazingly, analysts continue throwing out $10 billion valuations for news network CNN while Warner Bros. Discovery (NASDAQ:WBD) only has a market value of $30 billion. CNN constantly struggles to produce solid viewership metrics to suggest a large market value anymore. My investment thesis remains Bearish on Warner Bros. due to excessive competition in the media space.
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