One of the biggest points in the upcoming split between entertainment giant Warner Bros. Discovery (WBD) and the zombie-eyed carcass of its linear television operations known as Global Networks was what would happen to Turner Classic Movies? Would it be relegated to a slow death alongside the other linear channels? Or would an exception be made, keeping it with Warner proper? That question was answered, much to classic film buffs’ collective relief. Investors were pretty happy about it as well, giving shares a modest boost in the closing minutes of Wednesday’s trading.
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A report from Variety noted that the issue has been settled, and Turner Classic Movies will be part of the Studios and Streaming Group, despite the fact that it is also a linear television operation. In fact, the report noted, Turner Classic Movies will be the only exception offered. There will not even be a change of administration; Michael De Luca and Pamela Abdy, who took control in 2023, will retain said control.
The exception was made, the report noted, in order to ensure that “…the brand stays true to its roots and rich legacy.” Considering that the channel has names like Steven Spielberg and Paul Thomas Anderson advocating for it, it is small wonder that Warner would want to carve out a place for it. The idea of offending people like the ones so clearly on its side is a disaster for a company that is dependent on their goodwill for a supply of product.
HBO Max Is Back
Meanwhile, another name change to the HBO streaming platform took hold recently. The name has bounced around several times—remember when it was “HBO Go” for a while?—and now, HBO Max is back in play. Originally, Warner decided to ditch the “HBO” part, thinking that “Max” by itself could effectively take on the growing number of competitors in the streaming space.
Ultimately, Warner wised up to the huge value that “HBO” has—when people think movies on television, that tends to be one of the first names that come up– and decided to draw on that value once more in its streaming operations. Warner even used the occasion for a little light comedy, as HBO Chairman Casey Bloys noted, “The good news is I have a drawer full of stationary (sic) from the last time around.”
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 55.87% rally in its share price over the past year, the average WBD price target of $12.58 per share implies 9.44% upside potential.
