A few hours ago, we got word that NBCUniversal (NASDAQ:CMCSA) was bidding for the rights to air NBA games, and planning to drop $2.5 billion in its bid to do so. That, of course, did not sit well with Warner Bros Discovery (NASDAQ:WBD), who failed to land a new deal in recent bidding. That news sent investors into a panic, and while dashing for the exits, they took nearly 10% of Warner’s market cap with them.
NBCUniversal’s bid for the hotly desirable property left Warner out in the cold, and its tripartite ambition between itself, Disney (NYSE:DIS), and Fox (NASDAQ:FOXA) to create a massive universal sports streaming network is somewhat in question. However, there’s one point that could give Warner new life. It may not have set up a deal with the NBA, but its original contract allows it to match any offer made. So, if Warner can come up with the $2.5 billion needed to match NBCUniversal’s offer, it may still have those NBA rights.
And Speaking of Content…
Warner will want sports content available to contribute to its part of the giant streaming network it’s involved in. Variety reported that the group is set to start attracting advertisers, and in order for that to happen, it’s going to need access to sports content to stream.
Meanwhile, Warner is also said to be planning a new live-action adaptation of “Scooby-Doo,” which might be a taller order than expected now that the widely-reviled “Velma” animated series is entering its second season.
Is Warner Bros Discovery Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 43.98% loss in its share price over the past year, the average WBD price target of $13.61 per share implies 85.17% upside potential.
