Investors were unimpressed with what should have been a triumphant return for one of Hollywood’s biggest names. Indeed, media firm Warner Bros Discovery (NASDAQ:WBD) is down over 3.5% in Tuesday afternoon’s trading. The triumphant return in question is that of Tom Cruise, who hasn’t been part of a Warner production since 2014’s “Edge of Tomorrow.” Under the terms of the deal, Cruise will develop, produce, and star in films for Warner as part of a “strategic partnership deal.”
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Interestingly, the deal isn’t exclusive, so Cruise is free to carry on with the “Mission: Impossible” franchise, which is already shooting and features a $200 million budget. Warner, for its part, hopes to use Cruise’s star power to bring Warner back to “…the heights of its glory days,” a tall order indeed, given how much has changed in the interim.
Not Putting All Its Eggs in the Cruise Basket
In what should have been better news, it’s not just Tom Cruise that’s backing Warner. Warner also renewed its agreements with Canal+. That means Canal+ subscribers can access Warner titles six months after being released in French theaters. Warner is also taking a closer look at the concept of video games in light of the success seen with “Hogwarts Legacy,” which was not only the best-selling game of all of 2023 but also had over 700 million hours of total playtime.
What is the Target Price for Warner Bros Discovery Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on eight Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 12.46% loss in its share price over the past year, the average WBD price target of $16.09 per share implies 46.27% upside potential.
