The idea that media giant Warner Bros Discovery (NASDAQ:WBD), backed up by competitors Disney (NYSE:DIS) and Fox (NYSE:FOXA), was planning a massive sports streaming app was enough to capture quite a few investors’ imaginations. Today, though, it’s not much help, as Warner shares are down fractionally after revealing the name of that new sports app.
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The app is now known as Venu Sports, and based on word from the app’s CEO, Pete Distad, it’s expected to be available this fall. Reports note that the app’s target market will be younger viewers who either already are cable-cutters or never had cable to begin with. Further, it will offer a wide range of options, including NFL, NBA, and FIFA World Cup games.
It will also be available as part of a larger bundle with Disney+, Max, or Hulu. There’s really only one major task left to go, reports note, and that’s getting it past the regulators, who have been extraordinarily active lately in challenging deals.
Bracing for More Content, Cost-Cutting
Warner, meanwhile, is stepping up its content operations. Reports suggest that All Elite Wrestling (AEW) will be making a play at some point here, as the two got together back in 2019, with AEW shutting down two shows found on YouTube as a result. A new announcement is expected sometime in either the summer or the fall, depending on when a new agreement is reached, and adding AEW to Venu might be a solid value-add. Further, Warner is boosting its debt buyback to $2.5 billion, an increase from the previous $1.75 billion, as it looks to pare down its expenses.
Is Warner Bros Discovery a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 12 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 34% loss in its share price over the past year, the average WBD price target of $12.41 per share implies 53.12% upside potential.
