Shares of Warner Bros. Discovery fell about 8% at market open after the NBA announced three major rights deals with three WBD rivals on Wednesday, shutting the company out of the professional basketball league.
Wbd under pressure after NBA loss
It’s the latest blow to an already depressed stock — now trading at less than $8 — that is so low that some on Wall Street are calling for CEO David Zaslav to split up or remerge the company — just two years after the vaunted Warner Media-Discovery deal. The company is said to be exploring options.
Macquarie Equity Research's Tim Nollen this morning downgraded the stock to "neutral" from "outperform," meaning he doesn't think it's going anywhere anytime soon. The shares are already cheap, he acknowledged, "but we don't see a good fundamental investment case right now."
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