Media conglomerate Discovery stocks rose 17% on Friday, gaining momentum as investors eagerly anticipate a massive $ 43 billion merger with AT & T’s WarnerMedia, which has cleared several regulatory hurdles and is set to be completed in the next few months .
Discovery’s stock rose 17% on Friday as both analysts and investors became increasingly excited about the company’s upcoming merger with AT & T’s entertainment arm, WarnerMedia.
The $ 43 billion deal, set to close in the first half of 2022, will bring together well-known brands such as HBO, CNN, Animal Planet and Food Network under a new publicly traded company called Warner Bros. Discovery.
The Warner Discovery deal also recently cleared several antitrust hurdles, including regulatory approval from the European Commission and a positive ruling by the Internal Revenue Service.
John Stankey, CEO of AT&T, told a Citi investor conference earlier this week that the spin-off and merger of WarnerMedia with Discovery is proceeding according to plan, while hinting that the deal may close earlier than expected.
Bank of America analysts upgraded Discovery stock to a “Buy” rating on Friday, predicting the upcoming merger has the potential to create a “global media powerhouse” and a major windfall for investors.
The company is optimistic that the new venture will bring together some of its best streaming assets – namely HBO Max and the newer Discovery + – and emerge as an established competitor to other streaming giants like Netflix and Disney +.