These days—a point that entertainment giant Warner Bros. Discovery (WBD) is likely discovering—selling advertising is no easy feat. Especially for linear television networks. And to that point, Warner has shuffled the deck on its ad staff, and is even looking for a new advertising sales head for CNN. That disaster detail in the making left investors cold, and sent shares up fractionally in the closing minutes of Wednesday’s trading.
Several new members of the team were brought on, and some of the old team slipped away. Reports note that the advertising division has been basically in flux since 2023, when a round of ad sales changes hit mostly focused at the agency level. The new changes will bring expansion to operations like Shop with Max, Moments and the overall ad product suite.
But, in an odd twist, it seems that linear television will have a tougher time. In fact, Warner is still looking to fill one slot that suggests there is a problem: the head of advertising sales for CNN. This person will report directly to the CEO—working closely with Mark Thompson, no less, as well as the “CNN leadership team”—in a bid to “develop new digital platforms and products alongside their live channels and original programming.
Aussies Brace for Max
Meanwhile, Max—Warner’s streaming service—is making its way to Australia, where reports suggest it could be a major potential disruption. This is not the first time such a service has hit; in fact, Max is reportedly the last major international streaming service to hit Australia. But apparently, it makes an excellent substitute for Australia’s own BINGE service.
BINGE, interestingly, has been the home of HBO in Australia for years. But with Max in place—which will likely be the new home of HBO—that will pull a lot of fodder directly out of BINGE’s clutches. And with Max adding a bunch of new content besides, including a slate of Warner TV classics like Friends, The Big Bang Theory, and comparative newcomer Rick & Morty, the end result is that BINGE will likely look more like SNACK, if not outright FAMINE. Especially if a deal between BINGE and NBCUniversal (CMCSA) fails to go through next year.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 10 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 27.49% rally in its share price over the past year, the average WBD price target of $13.33 per share implies 21.02% upside potential.
