Harbor Research Lowers Rating on Warner Bros. Discovery

Deep News07-27



Paramount Sky Entertainment has confirmed a delay in its acquisition of the global media and entertainment company, pushing the timeline back to no later than June 2027. Following this announcement, Harbor Research Partners has downgraded its rating on Warner Bros. Discovery (WBD) stock.

The investment firm has revised its rating for Warner Bros. Discovery from Buy to Neutral, without providing a specific price target for the shares. In a note to clients on Sunday, Harbor analysts stated, "News broke late Friday that Paramount Sky Entertainment is pausing its acquisition of Warner Bros. Discovery... This latest postponement of the merger introduces further uncertainty. Even if the deal ultimately goes through, the returns are expected to be far more than just the spread on the cost of holding capital. Taking everything into account, we believe there are more attractive opportunities for capital allocation at this time."

Harbor has also reduced its second-quarter revenue forecast for Warner Bros. Discovery from the previous estimate of $9.302 billion down to $9.066 billion. The media company is scheduled to release its latest financial results on August 6.

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