02:25 PM EDT, 06/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price by $3 to $12 (consensus at $13) to reflect the planned tender offer of approximately $14.6B debt with June 9's announced corporate restructuring, expected to close in mid-2026. Our new target price reflects a TEV/EBITDA of 5.4x, which is below the 10-year average of 9.8x given WBD's weak execution since acquiring Warner Media in 2022 and major changes in the network and streaming markets. Management plans to split WBD into two companies: Global Networks (Discovery+, TNT Sports, CNN, and sports rights) and Streaming & Studios (HBO Max, Warner Bros. Television and Motion Picture Group, and film library). Global Networks will retain a 20% equity stake in Streaming & Studios. This will be a tax-free exchange for shareholders. WBD said Global Networks will monetize its 20% stake in Steaming & Studios to deleverage its balance sheet after the restructuring. In our view, the restructuring is an effort to render these businesses more focused and seize market opportunities.