The Bull Case For Warner Bros. Discovery (WBD) Could Change Following Planned Corporate Split and Franchise Expansion

• In August 2025, Warner Bros. Discovery announced a planned split into two public companies, appointing Gunnar Wiedenfels as CEO of the new Discovery Global division, while also revealing branded collaborations such as Harry Potter-themed products with Coffee mate® and Krispy Kreme, and the Mahindra BE 6 Batman Edition electric SUV.
• This blend of structural reorganization and high-profile franchise partnerships highlights the company's dual approach of operational transformation and expanded licensing to engage global audiences and unlock new revenue streams.
• We’ll examine how the company’s upcoming split and new leadership could shape Warner Bros. Discovery’s future investment narrative.

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Warner Bros. Discovery Investment Narrative Recap

To invest in Warner Bros. Discovery, you need confidence in the long-term monetization of its world-class content and franchises, particularly through international streaming growth and powerful brand partnerships. The recently announced split into two public companies, while significant, does not materially change the core near-term catalyst: accelerating growth and profitability in streaming. However, it also leaves unresolved the ongoing risk from declining linear TV revenues and the challenge of offsetting these losses fast enough.

Of the recent announcements, the high-profile partnerships around the Harry Potter brand, including new launches with Coffee mate and Krispy Kreme, underscore the company's ability to unlock fresh licensing opportunities. While these collaborations broaden franchise engagement and drive short-term buzz, their scale is unlikely to change the essential dynamics facing Warner Bros. Discovery’s larger streaming and network businesses.

But with TV advertising under pressure and linear decline still a concern, investors should remember the risks if franchise-driven growth ever slows...

Read the full narrative on Warner Bros. Discovery (it's free!)

Warner Bros. Discovery is expected to deliver $39.1 billion in revenue and $3.6 billion in earnings by 2028. This reflects a -0.6% annual revenue decline and a $2.8 billion increase in earnings from the current $772.0 million.

Uncover how Warner Bros. Discovery's forecasts yield a $14.69 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided six fair value estimates for Warner Bros. Discovery stock, ranging from US$14.69 to US$23.33. While opinions are split, recurring franchise revenue remains critical to performance, giving you a wide field of community viewpoints to consider.

Explore 6 other fair value estimates on Warner Bros. Discovery - why the stock might be worth as much as 94% more than the current price!

Build Your Own Warner Bros. Discovery Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Warner Bros. Discovery research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Warner Bros. Discovery research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Warner Bros. Discovery's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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