what happened to discovery stock

by Gracie Keebler Published 3 years ago Updated 2 years ago

Wrote the Times: “Discovery’s stock began to inexplicably rocket in February and March to $75 from $45 because of a convoluted trading scandal involving Archegos, a little-known private investment firm that bet big on Discovery and other companies via derivatives using billions in borrowed money.” Given the circumstances, that spike didn’t last.

Full Answer

Was Discovery’s 27% stock drop caused by insider trading?

Mar 26, 2021 · As of 1:40 p.m. EDT, Discovery Series A shares were down 27%, while Series C shares had fallen 30.9%. Meanwhile, ViacomCBS stock was down by a similar percentage. Image source: Getty Images.

Is discovery stock a good buy?

Apr 01, 2021 · Why It Matters: Last Friday, Discovery’s Class A shares fell 27.45% after the Bill Hwang-led Archegos Capital Management failed to meet a margin call from an investment bank and that bank began ...

Why is discovery (disca) stock trading higher on May 17?

Apr 02, 2022 · Discovery Communications and its three share classes will no longer exist as the company, unlike AT&T, will fully be merged into Warner Bros. Discovery. Immediately before the merger, Discovery ...

What happens to discovery stock when it merges with Warner Bros?

May 17, 2021 · Discovery stock is trading higher after markets gave a thumbs up to the merger between Discovery and WarnerMedia. As part of the agreement, AT&T will get $43 billion in a mix of debt securities ...

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Nov 02, 2017 · What happened Shares of Discovery Communications Inc (NASDAQ: DISCK) sold off after the company said its subscriber loss accelerated, and also reported a lower profit than expected in its third ...

What happens to Discovery stock after the merger?

Discovery's existing shareholders own the remainder of the new company. In addition to their new shares of WBD common stock, AT&T shareholders continue to hold the same number of shares of AT&T common stock they held immediately prior to close. Discovery, Inc.Apr 8, 2022

Why Discovery fell?

Cloudbreak Discovery PLC shares fell Monday after it said that it swung to a first half pretax loss, largely due to a loss on the market value of stock holdings and increased administrative expenses. Shares at 0717 GMT were down 0.88 pence, or 13% at 6.0 pence.Apr 4, 2022

What happened to Discovery stock in March 2021?

Shares of Discovery stock fell over 40% during the week of March 22, 2021 to March 29, 2021.Nov 1, 2021

Who bought out Discovery?

WarnerMedia

Discovery. AT&T's WarnerMedia unit and Discovery Inc said on Friday that the two firms have completed the merger.Apr 8, 2022

Will ATT stockholders get discovery stock?

(NASDAQ: DISCA, DISCB, DISCK). On the closing date of the transaction, anticipated to be in April, AT&T shareholders will receive, on a tax-free basis, an estimated 0.24 shares of stock in Warner Bros. Discovery, Inc. (WBD) for each share of AT&T common stock.Mar 25, 2022

Do ATT shareholders get Discovery shares?

AT&T management has been eager for the deal to close to focus on the company's core telecom operations. One issue will be what AT&T shareholders do with the Warner Brothers Discovery stock. A large portion of AT&T holders—an estimated 45% to 50%–are retail investors.Apr 11, 2022

Why did Discovery stock fall in March?

Wrote the Times: “Discovery's stock began to inexplicably rocket in February and March to $75 from $45 because of a convoluted trading scandal involving Archegos, a little-known private investment firm that bet big on Discovery and other companies via derivatives using billions in borrowed money.”

Who will buy Discovery Communications?

Under the current plan, AT&T shareholders will own 71% of the combined Discovery and WarnerMedia, to be known as Warner Bros. Discovery, and Discovery CEO David Zaslav will run the company. "This is a fantastic collection of assets," Zaslav said in an interview on CNBC last week.Feb 9, 2022

Is WarnerMedia publicly traded?

Yahoo Finance's Allie Canal breaks down the completed megamerger by AT&T and WarnerMedia-Discovery. Newly-formed streaming giant Warner Bros. Discovery (WBD) officially began trading on the Nasdaq (^IXIC) on Monday, opening at $24.08 a share in its first day as a publicly-traded entity.Apr 11, 2022

Did Discovery buy HBO?

Share All sharing options for: WarnerMedia and Discovery have completed their mega-streaming merger. The parents of HBO Max and Discovery Plus have officially completed their merger, allowing WarnerMedia and Discovery to build what the companies have said will be “the most differentiated content portfolio in the world. ...Apr 8, 2022

Who is buying WarnerMedia?

AT&T

AT&T bought WarnerMedia (formerly Time Warner) in 2018 for $85.4 billion with promises to bring streaming video to millions of mobile phones.Apr 8, 2022

What companies does WarnerMedia own?

WarnerMedia Entertainment would consist of HBO, TBS, TNT, TruTV, and the direct-to-consumer video service HBO Max. WarnerMedia News & Sports would have CNN Worldwide, Turner Sports, and the AT&T SportsNet regional networks led by CNN president Jeff Zucker.

Is Discovery stock a good buy?

Discovery stock looks like a good buy. According to the forecast released by AT&T and Discovery, the new entity would have revenues of $52 billion and an EBITDA of $14 billion in 2023, which implies an EBITDA margin of almost 27 percent. The companies are forecasting a free cash flow conversion ratio of 60 percent, which looks very healthy.

How many subscribers does Discovery have?

Now, after the merger is complete, we should look at the financials of the merged entity. Discovery has over 15 million paying streaming subscribers globally, while HBO and HBO Max reportedly have 64 million subscribers globally.

What happened

Shares of Discovery Communications Inc (NASDAQ: DISCK) sold off after the company said its subscriber loss accelerated, and also reported a lower profit than expected in its third-quarter earnings report. The stock closed down 10.1%.

So what

International growth was better than domestic growth, as sales outside the U.S. were up 11% compared to just 4% in the U.S. However, U.S. subscribers fell 5%, a sign that the company continues to suffer from the unwinding of the cable bundle. Advertising growth helped buffer the decline in subscribers.

Now what

Management is hopeful that the upcoming merger with Scripps Network Interactive (NASDAQ: SNI) will boost its prospects. The stock is down 39% this year as growth has slowed, and it's missed earnings estimates three quarters in a row.

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