While media giant Warner Bros. Discovery (WBD) is still reeling a bit from a judge’s decision to block its sports streaming joint venture, it has been making some new content moves behind the scenes that may be giving it just a bit of a boost. And Warner stock is up fractionally in Tuesday afternoon’s trading as a result.
The first major move for Warner is that it is working on a new deal with J.J. Abrams’ Bad Robot studio. It is not the first time that Bad Robot and Warner have worked together; in fact, some entire series were supposed to be put together but simply never reached fruition. This includes such things as the live-action series featuring freelance magician John Constantine and the Justice League Dark series.
Indeed, one such series, Batman: Caped Crusader, ultimately became a hit on the Amazon (AMZN) Prime Video platform. That was a loss of the kind Warner can scarcely afford right now, and getting Bad Robot back in its stable should go some way toward helping Warner attract new customers.
Ditching Games?
Meanwhile, some reports suggest that Warner may be looking to pull back on its video gaming presence, at least somewhat. The reports suggest that Warner Bros Games may be on the auction block, either in part or in whole. The news also comes at an odd time; Warner just recently picked up Player First Games, which developed the recent MultiVersus hit.
Why Warner would be looking to get out of games now at a time when games are coming into their own as entertainment isn’t clear. But it could likely make money in that vein by simply licensing its intellectual property out to other studios rather than developing its games in-house. Less money, perhaps, but with a lot less investment.
Is Warner Bros Discovery Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 17 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 39.49% loss in its share price over the past year, the average WBD price target of $12.50 per share implies 62.55% upside potential.
